Suppose there was a debate regarding intelligence budgets and the Democrat was arguing for a budget increase from $40 billion to $41 billion and the Republican was arguing for the budget to increase to $45 billion. Further, suppose intelligence salaries and procurement of the same spy systems are project to rise 5%. The Republican accuses the Democrat of proposing a cut to intelligence gathering which, the Democrat insists his plan increases that spending. What is going on here?
A. The Republican is cutting only if you use baseline budgeting.
B. Both are proposing cuts. They are both lying, regardless of budgeting technique.
C. The Democrat is cutting only if you use current services budgeting.
D. Both are proposing increases. The Republican is lying, regardless of budgeting technique.
Answer: C
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In the United States today, the U.S. dollar is backed by
A) silver. B) U.S. Treasury securities. C) gold. D) none of the above
The first example of comparative advantage appeared in a book that was published in 1817. This example showed that mutually beneficial trade between two countries (England and Portugal) was possible
The example assumed that two goods (wine and cloth) could be produced by both countries. Which of the following describes the conclusion of this example? A) England had an absolute advantage in both wine and cloth, but a comparative advantage in wine. B) Portugal had a comparative advantage in both wine and cloth, but its advantage in cloth was greater. C) Portugal had a comparative advantage in wine and England had a comparative advantage in cloth. D) England had a comparative advantage in both wine and cloth, but its advantage in cloth was greater.
Everything else held constant, a change in workers' expectations about inflation will cause ________ to change
A) aggregate demand B) short-run aggregate supply C) the production function D) long-run aggregate supply
A simple deposit multiplier equal to two implies a required reserve ratio equal to
A) 100 percent. B) 50 percent. C) 25 percent. D) 0 percent.