Which of the following statements is FALSE?
A. The federal budget deficit in 2020 was about 4 percent of the GDP.
B. The public debt of $10 billion is the accumulated debt of all U.S. individuals, firms, and institutions.
C. A budget deficit of $10 billion in a given year increases the public debt by $10 billion.
D. During the past five years, the U.S. public debt has been increasing.
Answer: B
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The actual deadweight loss from monopoly in the U.S. may be greater than calculated estimates because some
a. monopolies experience strong economies of scale b. monopolists spend resources to secure and maintain their monopoly c. monopolists may purposely keep price lower than its profit-maximizing level, in order to increase barriers to entry d. monopolists' markets are contestable e. monopolists' prices and profits are regulated by the government
Which of the following would cause a rightward shift of the demand for loanable funds curve?
a. a fall in the marginal rate of return on investment b. a fall in the value of the marginal product of capital c. a rise in the marginal product of capital d. a fall in the investment demand curve e. a fall in the price of the product capital produces