A rise in government expenditure __________ the natural rate of interest

A) lowers
B) raises
C) has no effect on
D) has an uncertain effect on


B

Economics

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When the government's outlays exceed its tax revenue, the national debt

A) shrinks thanks to the budget surplus. B) grows to finance the budget deficit. C) shrinks thanks to the budget deficit. D) grows to finance the budget surplus. E) does not change because it has nothing to do with government outlays and tax revenue.

Economics

A firm's short-run cost functions depend primarily on the firm's production function and the prices of the inputs to production

Indicate whether the statement is true or false

Economics

The law of large numbers:

A) can be used to explain why some people are risk averse and others are risk neutral or risk loving. B) can be used to explain why some people choose to self-insure against random, single and largely unpredictable events. C) states that large amounts of information are often preferred to small amounts of information. D) states that the average outcome of a large number of similar events can often be predicted.

Economics

Refer to the information provided in Figure 7.6 below to answer the question(s) that follow.  Figure 7.6Refer to Figure 7.6. If the price of capital is $10 and the price of labor is $20, the optimal production technique is

A. A. B. B. C. C. D. D.

Economics