Assume equilibrium at full employment for an economy characterized by the simple Keynesian model. If the government raises taxes to eliminate a budget deficit, then
A) the rate of unemployment will increase.
B) the level of aggregate output will increase.
C) the price level will increase.
D) the rate of interest will fall.
A
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The operation of supply and demand should be thought of as a process
A) for establishing consumer sovereignty. B) for increasing individual liberty. C) for maximizing social welfare. D) for maximizing total output. E) of mutual accommodation.
Each of the following is an example of a restrictive covenant on a mortgage loan, except:
A. requiring that the borrower reside in a home for which he or she receives a mortgage. B. requiring the borrower to obtain comprehensive health insurance. C. net worth requirements. D. insisting the borrower carry physical damage insurance on the property securing the loan.