During recessions
a. sales and profits fall.
b. sales and profits rise.
c. sales rise, profits fall.
d. profits fall, sales rise.
a
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Tight monetary policy raises the real interest rate, which ________ the demand for dollars, ________ the supply of dollars, and ________ the equilibrium value of the dollar.
A. decreases; decreases; decreases B. increases; increases; increases C. decreases; increases; increases D. increases; decreases; increases
To compare the net public debt of various countries, the debt has to be compared to
A) the country's real GDP. B) the country's current budget deficit or surplus. C) the country's trade deficit. D) the country's national defense expenditure.
If a good is inferior, its
A. Income elasticity of demand is positive. B. Cross-price elasticity is negative. C. Price elasticity of demand is negative. D. Income elasticity of demand is negative.
Federal government outlays include ________
A) transfer payments, grants to states, interest payments on the national debt and income tax revenues B) grants to states, interest payments on the national debt, income tax revenues and government purchases C) interest payments on the national debt, income tax revenues, government purchases and transfer payments D) government purchases, transfer payments, grants to states and interest payments on the national debt