Which of the Following Impacts Would Economists Expect to Result

question 43

Multiple Choice

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

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Definitions:

Mexican Pesos

The currency of Mexico, used in financial transactions within the country.

Invested

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Absolute Purchasing Power Parity

A theory that states the price of goods in one country should equal the price of the same goods in another country when exchange rates are considered.