Transfer payments are excluded from GDP
Indicate whether the statement is true or false
TRUE
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Expansionary fiscal policy is likely to lead a nation's currency to depreciate
Indicate whether the statement is true or false
If the government wishes to increase GDP by $1,200b, and the MPC is 0.75, it should:
A. increase its spending by $300b. B. decrease its spending by $300b. C. increase its spending by $900b. D. decrease its spending by $900b.
If a government must run a balanced budget, then tax revenues and government spending:
a. move roughly in opposite directions. b. move exactly in opposite directions. c. move exactly in the same direction. d. move roughly in the same direction.
If the government places a price ceiling on cancer-treating drugs, then
A. Fewer cancer treating drugs will be available. B. Fewer people will die from cancer. C. There will be no change in the number of people who die from cancer. D. The supply of cancer-treating drugs will increase.