The immediate effect of a purchase of a government bond on the gross domestic product (GDP) is_____
a. a decrease in consumption
b. an increase in government spending
c. an increase in investment
d. a decrease in investment
e. nonexistent, since no real goods and services have been produced
e
You might also like to view...
A government grant that gives an inventor the exclusive right or privilege to make, use, or sell his or her invention is known as
A) a negative externality. B) a patent. C) a protectionism clause. D) a positive externality.
A rational decision is one that
a. satisfies all desires. b. avoids the intentional allocation of resources. c. assigns available resources in the manner most preferred by decision makers. d. assigns available resources to the uses with the lowest opportunity costs.
Within the city of New Orleans, most of the victims of Hurricane Katrina were
A. rich and white. B. rich and black. C. poor and white. D. poor and black.
Which of the following statements is true?
A. An increase in exports causes a balance of payments surplus. B. A decrease in exports causes a balance of payments deficit. C. A decreases in imports causes a balance of payments surplus. D. none of the above