When government spending exceeds tax revenues during a specific time period, this is known as a
A. government budget deficit.
B. government budget surplus.
C. balanced budget.
D. public debt.
Answer: A
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In an economy without international trade, investment must equal ________ saving.
A. national B. public C. private D. life-cycle
Thomas Malthus was an early nineteenth-century economist that created a model describing the relationship between:
A. population growth and war. B. population growth and birth control. C. population growth and crime. D. population growth and food production.
Suppose an ocean liner sinks and the passengers are stranded on a lush tropical island. Which of the following could most likely be used as money in the economy that develops among the survivors?
a. The life jackets they put on when leaving the ship b. The beads from the necklaces that were given out as party favors on the night the ship sank c. The coconuts growing on the island d. The fish in the sea around the island e. The sand on the island's beaches
Other things the same, an increase in the U.S. interest rate causes the quantity of loanable funds supplied to
a. rise because net capital outflow and domestic investment rise. b. rise because national saving rises. c. fall because net capital outflow and domestic investment rise. d. fall because national saving falls.