Author Question: Economists can illustrate an uneven distribution of income by sketching a Lorenz curve that lies ... (Read 32 times)

natalie2426 · **on:** Jun 30, 2018

Economists can illustrate an uneven distribution of income by sketching a Lorenz curve that lies above the diagonal.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Which of the following is the chief link between the U.S. federal budget deficit and the U.S. trade deficit during the 1980s?
a. High U.S. interest rates led to a rise in the relative value of the dollar.
b. High U.S. interest rates led to a decrease in the relative value of the dollar.
c. Higher interest rates resulted in the crowding out of some private investment, reducing the stimulating effect of the government's deficit.
d. The U.S. price level declined relative to that of foreign countries, causing U.S. interest rates to fall.
e. The additional fiscal stimulus provided by a higher government deficit encouraged some firms to invest more.