An increase in the interest rate leads to:
a. an increase in planned inventories.
b. an increase in GDP.
c. an increase in unplanned inventories.
d. an increase in consumption.
e. none of the above.
C
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Which of the following factors will help determine how the costs of social regulation are split between consumers and producers?
a. The price elasticities of demand and supply b. The quantity produced by the firm c. The average total costs of the firm before regulation d. The number of consumers in the market e. The number of producers in the market
Which of the following impacts would economists expect to result from chronic budget deficits?
A. Greater economic efficiency resulting from the abundance of public goods produced. B. Permanently high levels of output and continued economic growth. C. Greater political control over monetary policy. D. Government control of an inefficiently large share of the economy's resources.