Which of the following statements is true?
a. The national debt is the current year's amount by which the government is spending more than it collects as taxes.
b. Deficits are financed by the government issuing for sale more government securities.
c. The debt ceiling refers to the amount of debt at which the government is officially declared as being bankrupt.
d. Internal national debt is the portion of the national debt owed to foreigners.
b
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All else held equal, economists would prefer a tariff over an import quota because
A. domestic producers can charge higher prices with a tariff than with an import quota. B. compared with an import quota, a tariff enables consumers to pay lower prices. C. a tariff enables the government to collect revenue, whereas an import quota does not. D. a tariff allows the market to adjust import quantities if domestic supply, domestic demand, or world price changes.
If government legislates a price floor that is below the equilibrium price
A. a shortage will develop. B. a black market will soon develop. C. a surplus will develop. D. market price and quantity sold will be unaffected.
If A is preferred to B and C is preferred to D, then B must be preferred to C to satisfy transitivity
a. True b. False Indicate whether the statement is true or false
Which of the following is an accurate statement about velocity?
a. It is rarely stable for long periods. b. It remains constant. c. It moves in a predictable way. d. It is determined by multiplying price level by money supply.