By holding so much in foreign currency reserves, China is risking
A. A default on its bonds.
B. Recession.
C. Inflation.
D. Deflation.
Answer: C
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Allocative efficiency is achieved in an industry when firms supply those goods and services that provide consumers with a marginal benefit equal to the marginal cost of producing those goods and services
Indicate whether the statement is true or false
Which of the following provide increased competition for public schools?
a. homeschooling b. charter schools c. vouchers d. all of the above
An increase in government spending will have the greatest expansionary impact on the economy if it is combined with:
a. an increase in tax revenue equal to the increase in spending. b. a decrease in tax revenue equal to the increase in spending. c. unchanged tax revenue. d. none of these is true.
If spending increased by $250, and the GDP decreased $1,000 as a result, the MPC must be:
A. ?0.75 B. 0.75 C. ?4 D. 2