When government runs a budget deficit,
a) interest rates decline
b) tax revenues exceed public expenditures
c) the national debt increases
d) inflation rates decline
e) the outstanding stock of government bonds is reduced
c) the national debt increases
You might also like to view...
Although he is very poor, Al plays the million-dollar lottery every day because he is certain that one day he will win. Al makes this calculation based upon
A) the frequency of past outcomes. B) subjective probability. C) knowledge of all possible outcomes. D) tossing a coin.
Which of the following will create a demand for or a supply of currencies?
a. Trade in goods b. Trade in services c. Trade in financial instruments d. Any of the above.
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.