The tendency for private saving to increase in response to growing government deficits is known as the
A) crowding out effect.
B) money illusion effect.
C) Keynes effect.
D) Ricardo-Barro effect.
D
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When Susan makes the statement, "The government should spend less money to take care of national parks," she is
A) making a normative statement. B) making a positive statement. C) testing an economic model. D) not dealing with scarcity.
An example of a U.S. export would be:
A. a French bottle of wine consumed by an American. B. an Apple computer purchased by a U.S. college student who plans to study abroad in France. C. a bushel of apples that Canadians pick and enjoy on a lovely fall day in Vermont. D. an Apple computer, made in the U.S., purchased by a French student.
What happens to each of the following if the supply of loanable funds shifts right? A. the interest rate B. net capital outflow C. the exchange rate
Suppose the economy is in a recessionary gap. If government expenditures are currently $1.4 trillion and tax revenues are currently $1 trillion, the (total) budget deficit is _____________. Assume that economists estimate that if the economy were operating at full employment, government expenditures would be $1.2 trillion and tax revenues would be $1.1 trillion. The structural deficit is
_________________ and the cyclical deficit is _______________. A) $2.4 trillion; $2.2 trillion; $200 billion B) $400 billion; $300 billion; $100 billion C) $400 billion; $100 billion; $300 billion D) $300 billion; $100 billion; $400 billion