If the President and Congress made decisions that increase the federal budget deficit, how will GDP growth change?
A. It will grow more quickly.
B. It will grow at the same rate.
C. It will grow more slowly.
Ans: A. It will grow more quickly.
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If a firm raises funds by recruiting additional owners to invest in the firm
A) the firm's net worth would decrease. B) the firm's financial capital would decrease. C) the firm's financial capital would increase. D) the firm's stock price would decrease.
Of the following exchange rate arrangements, in which does the exchange rate fluctuate around a fixed central target rate while allowing a moderate amount of fluctuation?
A) Independently floating B) Currency Board C) Horizontal Bands D) Fixed peg
The "new classical" economics took advantage of the disarray and partial eclipse of Keynesian economics to reestablish macro model-building based on the assumption of price ________ and market ________
A) flexibility, clearing B) flexibility, non-clearing C) stickiness, clearing D) stickiness, non-clearing
A lower price elasticity of demand coefficient occurs when:
a. many substitutes exist. b. the quantity demanded is more responsive. c. few substitutes exist. d. the market is broadly defined.