Does the term "mandatory spending" mean that spending must go on forever?
A) Yes, Congress has no right to change these spending programs.
B) Yes, the laws which authorized this spending cannot be changed.
C) No, once appropriated, spending is for the life of the program only or until it changes.
D) Yes, once appropriated, spending is indefinite.
C
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An example of a modern democratic government commandeering resources is
a. the military draft b. government subsidizing agriculture c. government engaging in transfer payments d. government food stamps e. government tax refunds
Assuming all other things equal, what would happen to the U.S. dollar real exchange rate under each of the following circumstances?
a. The U.S. nominal exchange rate depreciates. b. U.S. domestic prices increase. c. Prices in the rest of the world rise.