If the federal budget deficit were lowered, then the national debt would
A. decline.
B. stay the same.
C. rise at an increasing rate.
D. rise at a decreasing rate.
D. rise at a decreasing rate.
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If the supply of automobiles becomes more inelastic, then a tax on automobiles is
A) paid more by the buyers after the change than before. B) paid more by the sellers after the change than before. C) always split evenly between the buyers and the sellers. D) paid more by the government after the change than before. E) always paid entirely by the buyers.
If a country has a capital and financial account deficit, that country's stock of international indebtedness is
A) increasing. B) decreasing. C) constant. D) zero.
A vertical IS curve comes from the assumption that changes in the interest rate do NOT affect
A) money demand. B) the money supply. C) autonomous planned spending. D) the LM curve.
In an arms race between two nations, both would be better off if _____
a. they could agree not to engage in the arms buildup b. if more countries entered the arms race c. one nation controlled more resources than the other d. a conflict broke out in another part of the world