In 2009 Greece's budget deficit rose and people became worried about the ability of the Greek government to continue to make payments on its debt. Which of these events raise a country's interest rates?
a. an increase in the budget deficit and increased concerns about the ability of the government to pay back its debt
b. an increase in the budget deficit, but not increased concerns about the ability of the government to pay back its debt
c. increased concerns about the ability of the government to pay back its debt, but not an increase in the budget deficit
d. neither an increase in the budget deficit nor increased concerns about the ability of the government to pay back its debt
a
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Why are people more inclined to pick up a dime off the pavement in a parking lot, but not so inclined to dig three feet into the earth for a previously-buried dime?
A) The entrepreneurial spirit of Americans is gone. B) They don't know the value of the dollar—or dime—anymore. C) They weigh the expected additional costs and benefits, and choose accordingly. D) People haven't taken enough economics in college.
Which of the following shocks is most likely to cause an expansion?
a. An upward spike in oil prices. b. An increase in autonomous consumption spending. c. A significant decline in business equipment spending. d. A sudden increase in the interest rate. e. A significant decline in exports.