Which of the following equations represents the saving schedule implicit in the given data?
Answer the question on the basis of the following data:
A. S = C - Y d .
B. S = 40 + .4Y d .
C. S = 40 + .6Y d .
D. S = -40 + .4Y d .
D. S = -40 + .4Y d .
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Supporters of minimum-wage legislation argue that:
A. workers deserve a basic standard of living. B. it would not be fair for firms to pay a wage that would leave workers struggling to escape poverty. C. a worker earning minimum wage should be able to live above the poverty line. D. All of these are true.
In the United States in 2015, government purchases of goods and services were
a. larger than consumption, but smaller than investment. b. larger than investment, but smaller than consumption. c. smaller than both consumption and investment. d. larger than both consumption and investment.
The ___________ school holds that all inflations are caused by excessive growth in the money supply and that monetary policy affects GDP directly.
Fill in the blank(s) with the appropriate word(s).
According to the Ricardian equivalence theorem, a tax cut that increases the government budget deficit will have
A. no effect on aggregate demand because people realize that there will be a future tax liability so that there is no increase in consumption expenditures. B. a positive effect on aggregate demand because people look at changes in taxes or government spending in the present. C. no effect on aggregate demand because people only look at changes in taxes or government spending in the present. D. an effect on aggregate demand. The magnitude the effect will have depends upon whether the increase is caused by a reduction in taxes or an increase in government spending.