Multiple Choice
If the economy is at full employment, inflation will result if:
A) net exports go from a positive to a negative number.
B) government purchases and transfers are less than taxes.
C) injections into the spending stream exceed leakages from the spending stream.
D) expectations of future conditions cause households to delay current purchases.
Correct Answer:
Verified
Correct Answer:
Verified
Q16: Spending from borrowing, and saving from income
Q17: A decrease in nonincome-determined spending leads to:<br>A)
Q18: The sector of the economy that purchases
Q19: Which of the following statements about business
Q20: How are all business cycles alike, and
Q22: Government transfer payments:<br>A) are income-determined spending.<br>B) are
Q23: If government purchases increased by $30 billion,
Q24: The multiplier effect:<br>A) equals the change in
Q25: Fiscal policy involves:<br>A) taxes.<br>B) transfer payments.<br>C) government
Q26: Why does a change in non-income-determined spending