When a government runs a deficit
A. it must cut spending.
B. its debt increases.
C. it must raise taxes
D. its debt decreases.
Answer: B
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Explain the capture hypothesis
What will be an ideal response?
When the money market is drawn with the value of money on the vertical axis, an increase in the money supply creates an excess
a. supply of money, causing people to spend more. b. supply of money, causing people to spend less. c. demand for money, causing people to spend more. d. demand for money, causing people to spend less.
According to a recent survey, in 2016, the number of U.S. households that owned equities was about
A. 3 percent. B. 27 percent. C. 50 percent. D. 65 percent.
If you hear an economist argue that the economy does not experience business cycles but merely experiences variations in economic activity over time, you know that economist belongs to the school of
a. real business cycle theory b. Keynesian economics c. production possibilities growth theory d. accelerator cycle theory e. capital-based, long run growth theory