If the economy is in an inflationary gap and the government attempts to balance the budget, the effect will be to
A. counteract inflation.
B. reduce the trade deficit.
C. continue inflationary pressures.
D. increase unemployment.
Answer: C
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The figure shows the market for college education. The efficient number of students is
A) less than 4 million. B) more than 4 million and less than 8 million. C) 4 million. D) 8 million. E) more than 8 million.
A self-correcting mechanism tending to bring a country's balance of payments into equilibrium exists under __________ exchange rate systems
A) fixed and floating B) floating, but not fixed C) fixed, but not floating D) neither fixed nor floating
A market which consists of many sellers and only one buyer is called a:
A. monopsony. B. monopoly. C. oligopoly. D. monopolistic competitor.
Differences in interest rates for different type of loans are due to:
A. the length of time the borrower has to repay the loan. B. the amount of the loan. C. government policy. D. exchange rate