Refer to the data. The budget deficit in year 3 is:
Answer the question using the following budget information for a hypothetical economy. Assume that all budget surpluses are used to pay down the public debt.
A. $175 billion.
B. $3,050 billion.
C. $100 billion.
D. $295 billion.
C. $100 billion.
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Everything else held constant, an increase in expected inflation, lowers the expected return on ________ compared to ________ assets
A) bonds; financial B) bonds; real C) real estate; financial D) real estate; real
Suppose that a new invention decreases the marginal productivity of labor, shifting labor demand to the left. Such an invention would be an example of
a. labor-saving technology. b. labor-augmenting technology. c. revenue technology. d. supply-shifting technology.
Discuss whether the economy would be more or less efficient if public corporations issued fewer shares of stock.
What will be an ideal response?
Which of these is NOT an example of opportunity cost?
A. Lobster catchers in Point Judith, Rhode Island continued to trap lobsters at the cost of depleting the lobster population. B. President George W. Bush's administration has pushed for oil exploration in the Arctic National Wildlife Refuge in Alaska at the cost of environmental preservation. C. Lobster catchers in Port Lincoln, Australia paid a licensing fee for the right to own lobster traps. D. The "bridge to nowhere" to be built near Anchorage, Alaska comes at the cost of adding to the federal budget deficit.