Author Question: If government spending does not change, an increase in the government deficit leads to A) an ... (Read 89 times)

Kthamas

  • Hero Member
  • *****
  • Posts: 546
If government spending does not change, an increase in the government deficit leads to
 
  A) an increase in current consumption.
  B) a decrease in current consumption.
  C) no change in current consumption.
  D) it depends on the marginal propensity to consume.

Question 2

We assume that the representative consumer's preferences exhibit the properties that
 
  A) they evolve over time and that more is always preferred to less.
  B) more is preferred to less and that the consumer prefers diversity.
  C) the consumer likes diversity and that more is sometimes preferred to less.
  D) more is sometimes preferred to less and that consumption and leisure are both normal goods.



owenfalvey

  • Sr. Member
  • ****
  • Posts: 337
Answer to Question 1

C

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

For a complete list of videos, visit our video library