A budget deficit exists if government spending ________.
is less than tax revenue (government budget surplus)
is more than tax revenue.
equals to tax revenue
it is impossible to have a budget deficit
is more than tax revenue.
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Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The best point for society would be
A. either Point B or Point C, as the total amount being produced at either of these points is approximately the same. B. at any of the labeled points, as all of the points represent an efficient allocation of resources. C. Point C, as at this point there are approximately equal amounts of LCD and OLED televisions being produced. D. indeterminate from this information, as we don't have any information about the society's desires.
You work as a forecaster for a luxury automobile manufacturer. You know that there is a strong positive relationship between the demand for luxury automobiles and income levels. The government issues a report predicting that it expects income levels to increase steadily over the next 5 years. All else equal, which of the following courses of action would you recommend to the firm?
A. Start to increase investment now so that when income levels increases and the demand for luxury automobiles increases, the firm will be able to meet the new demand. B. Don't change the amount of investment made, but raise the price of luxury automobiles in response to the expected increase in the demand. C. Suggest that the firm curtail its advertising to avert a substantial increase in demand for luxury automobiles. D. Suggest that the firm make an investment in new capital to produce luxury automobiles only after it can verify an increase in income levels.
If gross investment in 2017 is $750 billion and depreciation in 2017 is $750 billion, net investment in 2017 is
A. -$750 billion. B. zero. C. $750 billion. D. $1,500 billion.
The Federal Open Market Committee directive is a
A) general statement of Federal Reserve policy goals. B) detailed description of government security purchases to be carried out by the New York Federal Reserve bank. C) statement specifying the maximum level of inflation the Federal Reserve will accept. D) statement specifying the maximum level of unemployment the Federal Reserve will accept.