Changes in government spending
A. are an indirect component of the expenditures schedule.
B. have a different multiplier effect than changes in business investment spending.
C. are a direct component of the expenditures schedule and have the same multiplier effect as changes in business investment spending.
D. do not have an effect on spending if they are matched by tax changes.
Answer: C
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Which of the following statements is true?
A. Because the cost of labor used on farms is so high, the United States exports very little of its wheat, rice and corn crops. B. Imports and exports account for over one-half of the GDP of Belgium. C. Japan is more dependent on foreign trade than is the United States. D. France is the leading exporting country, accounting for 10 percent of total world exports.
Which of the following is NOT a disadvantage to inflation targeting?
A) There is a delayed signal about achievement of the target. B) Inflation targets could impose a rigid rule on policymakers. C) There is potential for larger output fluctuations. D) There is a lack of transparency.