Which of the following categories accounted for the third largest percentage of total federal ...

Which of the following categories accounted for the third largest percentage of total federal government expenditures?
 a. Education and health.
  b. National defense.
  c. Income security.
  d. Interest on the national debt.

QUESTION 2

According to the adaptive expectations theory, people form their expectations of the future on the basis of future expectations.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 3

Inflation refers only to rising prices at a given time period.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

Since 1970, the composition of federal expenditures has:
 a. been virtually unchanged, but federal spending as a share of GDP has declined substantially.
  b. been virtually unchanged, but federal spending as a share of GDP has increased sharply.
  c. shifted away from national defense and toward spending on income security.
  d. shifted away from income security income transfers and toward spending on national defense.

QUESTION 5

According to the adaptive expectations theory, after many years of rising prices, people tend to ignore past experience in predicting the future rate of inflation.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 6

During periods of hyperinflation, which of the following is the most likely response of consumers?
 a. Save as much as possible.
  b. Spend money as fast as possible.
  c. Invest as much as possible.
  d. Lend money.