Scenario 26-3

question 20

Multiple Choice

Scenario 26-3.Assume the following information for an imaginary,open economy.
Consumption = $1,000;investment = $200;net exports = -$50;
taxes = $230;private saving = $225;and national saving = $150.
-Refer to Scenario 26-3.This economy's government is running a

• A)budget deficit of $75.
• B)budget deficit of $80.
• C)budget deficit of $50.
• D)budget deficit of $100.

---

Definitions:

Placebo Effect

The phenomenon that occurs in an experiment when a participant’s response to a treatment is due to his or her expectations about the treatment rather than to the treatment itself.

Sugar Pill

A placebo, often used in medical trials to test the efficacy of new drugs by comparing their effects to those of an inert pill.

Drowsy

A feeling of being sleepily tired and lethargic, not fully awake, often as a prelude to falling asleep.

Random Assignment

The process of selecting participants for experimental and control groups by using a chance procedure to guarantee that each participant has an equal probability of being assigned to any of the groups; a control for selection bias.