A budget surplus
A) occurs when government expenditures exceed tax revenues.
B) occurs when tax revenues exceed government expenditures.
C) occurs when tax revenues exceed transfer payments.
D) occurs when monetary policy works in the opposite direction of fiscal policy.
E) is an impossibility.
B
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If the government sector is running a deficit of $120 million and the private sector is running a surplus of $200 million, then net exports equal
A) $80 million surplus. B) $320 million surplus. C) $80 million deficit. D) $320 million deficit.
A change in the composition of the population will generally
a. change demand only if there is a change in the size of the population b. change demand only if there is no change in the size of the population c. change demand even if there is no change in the size of the population d. have absolutely no effect on demand e. result in a movement along the demand curve
A nation has a comparative advantage in producing a good if it has a lower opportunity cost of producing that good than other countries have
a. True b. False
When using the money supply figures to measure the direction of monetary policy during the last several decades, it is better to look at changes in the M2 money supply rather than M1 because
a. the increase in popularity of interest-earning checking accounts in the 1980s distorted the M2 money supply but not the M1 money supply. b. the increase in popularity of interest-earning checking accounts in the 1980s distorted the M1 money supply but not the M2 money supply. c. the decrease in popularity of interest-earning checking accounts in the 1980s distorted the M1 money supply but not the M2 money supply. d. the decrease in popularity of interest-earning checking accounts in the 1980s distorted the M2 money supply but not the M1 money supply.