The budget deficit/surplus projections for 2005 that were made in 2001 were wrong, because there was an
A. unanticipated increase in homeland security spending.
B. anticipated increase in defense spending.
C. anticipated increase in immigration.
D. unanticipated increase in interest rates.
Answer: A
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A choice made by comparing all relevant alternatives systematically and incrementally is
A) an opportunity cost. B) a choice on the margin. C) a benefit. D) a sunk cost. E) a choice made in the social interest.
Explain the difference between Microeconomics and Macroeconomics
What will be an ideal response?
Which of the following makes it more difficult for monetary policy makers to time policy changes correctly?
a. Monetary policy makers cannot act without congressional approval. b. The primary effects of the policy change will not be felt for 6 to 15 months into the future. c. The Board of Governors of the Federal Reserve System does not meet very often. d. Monetary policy affects only the general level of prices; it exerts no impact on real variables such as output and employment.
If the budget deficit increases, then
a. U.S. residents will want to purchase more foreign assets and foreign residents will want to purchase more U.S. assets b. U.S. residents will want to purchase more foreign assets and foreign residents will want to purchase fewer U.S. assets c. U.S. residents will want to purchase fewer foreign assets and foreign residents will want to purchase more U.S. assets d. U.S. residents will want to purchase fewer foreign assets and foreign residents will want to purchase fewer U.S. assets