Questions from General Economics

Q: What is a government budget deficit? How does it affect interest

What is a government budget deficit? How does it affect interest rates, investment, and economic growth?

Q: What is investment? How is it related to national saving in

What is investment? How is it related to national saving in a closed economy?

Q: The labor-supply curve slopes upward if a. leisure

The labor-supply curve slopes upward if a. leisure is a normal good. b. consumption is a normal good. c. the income effect on leisure is greater than the substitution effect. d. the substitution effec...

Q: Nina wants to buy and operate an ice-cream truck but

Nina wants to buy and operate an ice-cream truck but doesn’t have the financial resources to start the business. She borrows $5,000 from her friend Max, to whom she promises an interest rate of 7 perc...

Q: If the government collects more in tax revenue than it spends,

If the government collects more in tax revenue than it spends, and households consume more than they get in after-tax income, then a. private and public saving are both positive. b. private and public...

Q: A closed economy has income of $1,000, government

A closed economy has income of $1,000, government spending of $200, taxes of $150, and investment of $250. What is private saving? a. $100 b. $200 c. $300 d. $400

Q: If a popular TV show on personal finance convinces more Americans about

If a popular TV show on personal finance convinces more Americans about the importance of saving for retirement, the _________ curve for loanable funds would shift, driving the equilibrium interest ra...

Q: The government spends $3 billion to buy police cars. Explain

The government spends $3 billion to buy police cars. Explain why aggregate demand might increase by more than $3 billion. Explain why aggregate demand might increase by less than $3 billion.

Q: If the business community becomes more optimistic about the profitability of capital

If the business community becomes more optimistic about the profitability of capital, the _________ curve for loanable funds would shift, driving the equilibrium interest rate _________. a. supply, up...

Q: From 2008 to 2012, the ratio of government debt to GDP

From 2008 to 2012, the ratio of government debt to GDP in the United States a. increased markedly. b. decreased markedly. c. was stable at a historically high level. d. was stable at a historically lo...