Increases in government expenditures and large budget deficits are projected for 2014-2020 . If the economic recovery is weak and growth is sluggish during this decade, this will be
a. supportive of the Keynesian view, but inconsistent with the crowding-out, new classical, and supply-side theories.
b. inconsistent with the Keynesian view, but supportive of the crowding-out, new classical, and supply-side theories.
c. inconsistent with both Keynesian and non-Keynesian theories.
d. supportive of both Keynesian and non-Keynesian theories.
B
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In drawing a budget line it is assumed that:
A) consumer preferences are fixed. B) the prices of the two products are variable. C) money income is fixed. D) consumer willingness to substitute between the two products is fixed.
Which of the following would shift the saving schedule upward?
A. A decrease in wealth B. A decrease in real interest rates C. Consumer expectations of rising prices of products D. Increased optimism about future incomes