According to James Carville, what is the best predictor of presidential voting outcomes?
a. the gross domestic product
b. a prosperous economy
c. voters' perception of their own personal economic well-being
d. voters' perception of general economic conditions
Question -2-Which of the following is a problem of growing concern with respect to the U.S. national debt?
a. that an increasing share of the debt is owed to foreign banks and governments
b. that there are too few people working to continue to fund the level of debt
c. that the U.S. Congress is now constitutionally forbidden from floating debt
d. that too much debt will cause the economy to overheat and increase unemployment levels
Question -3-When inflation threatens, which of the following responses is the Fed likely to make?
a. expand the money supply
b. lower the discount rate and thereby the cost of borrowing by banks
c. lower interest rates
d. sell off government bonds to banks and others thereby reducing the funds banks can lend to individuals and businesses