If a country finds that its Lorenz curve is moving further away from the diagonal, this means its ...

If a country finds that its Lorenz curve is moving further away from the diagonal, this means its income is becoming more unevenly distributed over time.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

Other things remaining constant, higher trade deficits in the U.S. will lead to:
 a. U.S citizens buying greater foreign securities.
 b. an increase in domestic savings in the U.S.
 c. a decrease in the demand for U.S. dollars.
 d. an increase in funds from abroad.
 e. an increase in the standard of living of the U.S residents.

QUESTION 3

The inflation experienced in the United States during the late 1960s as a result of the spending on the Vietnam War is an example of:
 a. hyperinflation.
 b. demand-pull inflation.
  c. disinflation.
 d. cost-push inflation.
 e. cyclical inflation.

QUESTION 4

The U.S. Lorenz curve today is closer to the perfect equality line than in 1929.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

The crowding in of private investment is associated with:
 a. a leftward shift of the aggregate demand curve for an economy.
 b. a leftward shift of the aggregate supply curve of an economy.
 c. a reduction in the level of government spending.
 d. a reduction in corporate income taxes.
 e. an increase in aggregate demand induced by increased government borrowing.

QUESTION 6

Suppose the price levels in an economy in four successive years are 100, 120, 133, and 140 . Which of the following is true in such a case?
 a. The economy is experiencing hyperinflation.
 b. The economy is experiencing deflation.
 c. The economy is experiencing inflation.
 d. The economy is experiencing increasing inflation.
  e. The economy is experiencing disinflation.