Suppose the federal government had budget deficits of $40 billion in year 1 and $50 billion in year 2 but had budget surpluses of $20 billion in year 3 and $50 billion in year 4. Also assume that it used its budget surpluses to pay down the public debt. At the end of these four years, the federal government's public debt would have
A. decreased by $70 billion.
B. decreased by $20 billion.
C. increased by $90 billion.
D. increased by $20 billion.
Answer: D
You might also like to view...
In 2006, a Social Security (FICA) tax of 7.65% of payroll earnings was paid by both the employee and the employer
Indicate whether the statement is true or false
We are maximizing our utility when the marginal utility of each good or service we purchase is _________ to its price.
Fill in the blank(s) with the appropriate word(s).
Refer to Table 2-3. Assume Dina's Diner only produces sliders and hot wings. A combination of 80 sliders and 50 hot wings would appear
A) along Dina's production possibilities frontier. B) inside Dina's production possibilities frontier. C) outside Dina's production possibilities frontier. D) at the vertical intercept of Dina's production possibilities frontier.
A decrease in the interest rate will cause the intertemporal budget constraint to _______________ through the endowment point.
A. pivot clockwise B. pivot counter-clockwise C. shift clockwise D. shift counter-clockwise