In a closed economy with fixed output, an increase in government spending without any change in taxes will lead to a(n):
A. increase in the real interest rate and a decrease in private saving.
B. decrease in the real interest rate and an increase in private saving.
C. decrease in the real interest rate and no change in private saving.
D. increase in the real interest rate and no change in private saving.
Ans: D. increase in the real interest rate and no change in private saving.
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An organization that provides a public good is:
A. DHL Overnight. B. Federal Express. C. the U.S. Post Office. D. the United Parcel Service.
Refer to the graph shown. Assume the market is initially in equilibrium at point j in the graph but the imposition of a per-unit tax on this product shifts the supply curve up from S0 to S1. The effect of the tax is to raise equilibrium price from:
A. c to b. B. d to b. C. e to c. D. d to c.