A negative cross elasticity indicates that two goods are complements
a. True
b. False
Indicate whether the statement is true or false
True
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During which years did the country have a balanced budget?
A) 2008 and 2009 B) 2012 only C) 2011 only D) 2010 and 2012 E) all except 2011
What is the impossibility theorem?
What will be an ideal response?
If the inflation rate is 7 percent, real GDP growth is 2 percent, and the current budget deficit is $100 billion, what must the current national debt be if the debt-GDP ratio is to remain the same?
A) $1,111 billion B) $2,000 billion C) $1,429 billion D) $5,000 billion
The crowding-out effect refers to the tendency of expansionary fiscal policy to
A) cause decreases in planned investment or planned consumption. B) cause households to save less. C) replace low-skilled labor with higher-skilled labor. D) cause firms to produce beyond capacity.