The interest rate will _____ and the quantity of loanable funds invested will _____ when the government decreases the budget deficit
Fill in the blank(s) with correct word
fall, increase
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Special interest group Q receives a 1/10,000th slice of the economic pie. Its net benefit from either an economic growth policy or a transfer policy is $50,000. In order for group Q to be indifferent between the two policies, the economic growth policy would have to make the size of the economic pie (Real GDP) grow by _________________. This type of analysis is used to show that special interest groups tend press government for ______________ instead of ________________.
A. $50,000,000; economic growth; transfers B. $500,000; transfers; economic growth C. $500,000,000; transfers; economic growth D. $5,000,000; transfers; economic growth E. none of the above
A sub-game perfect Nash equilibrium is defined as
A) a set of strategies that are a Nash equilibrium in every subgame of a static game. B) a set of strategies that are a Nash equilibrium in every subgame of a dynamic game. C) a set of strategies that are a Nash equilibrium in a single subgame of a dynamic game. D) the game within the game.
Suppose two variables are directly related. If one variable rises, then the other variable:
a. also rises. b. falls. c. remains unchanged. d. reacts unpredictably.
The demand for borrowed funds is a derived demand.
Answer the following statement true (T) or false (F)