Suppose that we reduce the federal budget deficit (in billions of dollars) in year 1 from 300 to 150 and in year 2 from 150 to 50. During these two years the national debt will
A. fall by 50.
B. rise by 50.
C. rise by 150.
D. rise by 200.
D. rise by 200.
You might also like to view...
A Nash equilibrium in the duopoly game
A) means that one player has greater market power. B) occurs when each player takes the best possible action regardless of the strategy chosen by other firms. C) will always lead to equilibrium in which the firms' total profit is the largest. D) can occur only if firms cooperate with each other. E) means that a firm must be able to determine its actions and the actions of its competitor.
If businesses spend an additional $150 billion for investment projects in 2010, what will be the impact on national income (Y) if the multiplier is 2?
a. Y will increase by $50 billion. b. Y will increase by $150 billion. c. Y will increase by $300 billion. d. Y will increase by $450 billion.
A major problem under the gold standard was the inability to adjust the money supply to economic expansion
a. true b. false
Refer to the information above. The price of U.S. goods measured in pounds is
A) .8. B) 1.0. C) 1.6. D) 2. E) none of the above