In the absence of a Ricardo-Barro effect, a government budget deficit ________ the demand for loanable funds, ________ the real interest rate, and ________ investment
A) increases; increases; crowds out
B) increases; decreases; increases
C) decreases; increases; increases
D) decreases; increases; crowds out
A
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Refer to Table 5.1. Hector should specialize in the production of
A) bracelets. B) tiaras. C) both products. D) neither product.
Because original ideas are likely to become known and used by others, without the inventor's knowledge or consent, ________
A) technology is the key driver of economic growth B) new ideas contribute little to economic growth C) we refer to ideas as rival D) technology is inherently exogenous
The historical record indicates that foreign aid has
a. played a major role in helping formerly poor countries grow rapidly and achieve high income levels. b. re-enforced corrupt governments and policies that stifle productive activities. c. helped poor countries escape counterproductive policies imposed by authoritarian political leaders. d. promoted economic growth, but slowed the movement toward political democracy.
Which of the following is an example of a public good?
A. A weather warning system. B. A television set. C. A sofa. D. A bottle of soda.