Over a decade or longer, a government budget deficit

A) reduces national saving and stimulates economic growth.
B) reduces national saving and economic growth.
C) increases national saving and economic growth.
D) increases national saving and decreases economic growth.


B

Economics

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If the Fed fears a recession, it

A) decreases aggregate supply. B) buys government securities. C) sells government securities. D) decreases the quantity of money. E) decreases aggregate demand.

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Which of the following companies was not broken up by the government?

A. Standard Oil B. AT&T C. American Tobacco D. Office Depot

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When people make decisions that go against their own interests, neoclassical economics explains this to be instances where people are:

A. Intentionally not maximizing their net benefit B. Ignorant of what their best interests are C. Simply incapable of making rational decisions D. Behaving quite rationally

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