Figure 16-3
If budget deficits shift the money demand curve as is illustrated in Figure 16-3, which component of total expenditures will be affected the most?
a.
consumption spending
b.
government spending
c.
private investment spending
d.
net exports
c
Economics
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If the expansion of output in an industry leads to unchanged resource prices, the industry is most likely to be a(n):
a. decreasing cost industry. b. increasing cost industry. c. constant cost industry. d. industry characterized by economies of scale.
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Adam Smith's basic economic philosophy stated in The Wealth of Nations can be stated as:
a. laissez faire. b. allow to act. c. the least government is best. d. all of these.
Economics