One of the practical issues in the choice of government spending or taxes to change aggregate demand is how large a
A. change in demand we want.
B. trade deficit we want.
C. budget deficit we want.
D. government sector we want.
Answer: D
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Which of the following is true about inflation?
a. Inflation promotes social harmony by uniting people against the government. b. Inflation is more damaging if it is anticipated. c. Accurate anticipation of inflation is possible for everyone who is well informed about economic events. d. Those who lend money at a rate below the rate of inflation suffer economic losses. e. If people accurately anticipate inflation, their actions will prevent it.
According to the textbook, the income elasticity of demand is:
A about the same in the short run and in the long run. B much smaller in the short run than in the long run. C much larger in the short run than in the long run. D is difficult to differentiate from the short run to the long run.
If = 4%, = 3%, and = 2%, then must equal:
What will be an ideal response?
Which of the following statements is correct?
A. From the bank’s point of view, loans to customers are assets of the bank. B. From the bank’s point of view, loans to customers are liabilities of the bank. C. From the customer’s point of view, loans to customers are assets of the customer. D. From the customer’s point of view, loans to customers are liabilities of the customer. E. a and b only F. a and d only