Which of the following is not a legitimate reason for maintaining federal budget deficits?
a. Deficits boost domestic saving, which in the long run could promote economic growth.
b. Deficits help reduce the size and duration of recessions through automatic stabilizers.
c. Deficits are used to finance capital projects
d. Public spending through deficit financing wins support from the voters.
e. A federal budget deficit stimulates aggregate demand.
a
Economics
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Adam Smith used the metaphor of the "invisible hand" to explain how
A) business owners are benevolent. B) markets mismatch buyers and sellers. C) people acting on their own self-interest promote the interest of society as a whole. D) the production possibilities frontier illustrates efficient outcomes.
Economics
The ________ the exchange rate, the ________ are foreign-produced goods and hence the greater the quantity of dollars supplied
A) higher; cheaper B) lower; cheaper C) higher; more expensive D) lower; more expensive
Economics