Why does the U.S. government most likely distribute military spending to bases across the country?
a. To encourage support of defense spending
b. To limit the power of defense contractors
c. To meet the demands of special interest groups
d. To ensure that defense budgets are adequate
a. To encourage support of defense spending
You might also like to view...
Suppose that data for a particular economy over time suggest that its aggregate demand curve is both steep and shifts frequently. We might reasonably infer that ________
A) the central bank has an activist emphasis on the stability of economic activity B) wages and prices are remarkably flexible C) policy lags are quite long D) all of the above E) none of the above
Suppose the U.S. can produce 10 units of food and 5 units of clothing (or any such linear combination) and Canada can produce 6 units of food and 4 units of clothing (or any such linear combination)
If trade occurs between these two countries, which should produce more food and which more clothing?
Consider someone who borrows $10,000 to buy a car at a fixed interest rate of 9%. If inflation is 3% at the time the loan is made, what is the real interest rate at which the loan must be repaid, and to what level would the interest rate have to rise for the real interest rate on the loan to be zero?
a. 4.5%; 7.5% b. 6; 9% c. 8%; 10% d. 6; 12%
The derived demand for borrowed funds has the characteristic negative slope of any demand curve
a. True b. False Indicate whether the statement is true or false