If there is a decrease in world investment ________
A) domestic investment would fall
B) net capital outflow would increase
C) the domestic interest rate would go up
D) all of the above
E) none of the above
E
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The government should only provide a pure public good if ________ and ________.
A. the good's benefits exceed its costs; there is no less costly way to provide it B. the good is indeed a public good; the majority of voters want it to be provided C. voters desire the good; no new taxes will be needed D. the good's benefits exceed its costs; the government can afford to provide the good
A rising standard of living will:
A. necessarily reduce the population by reducing the birthrate. B. increase the birthrate. C. reduce the birthrate, but population may continue to grow if the death rate falls more quickly. D. reduce the birthrate initially but will increase the birthrate significantly at higher levels of income as people can afford to have more children.
Household spending on goods and services is known as
A) consumption spending. B) government purchases. C) net exports. D) planned investment spending.
Suppose the central bank announces that it will permanently increase the inflation rate and there is central bank credibility
With adaptive expectations, expectations of inflation will adjust ________, and with rational expectations, expectations of inflation adjust ________. A) slowly; slowly B) slowly; immediately C) immediately; immediately D) immediately; slowly