A budget deficit is incurred whenever:
A. Tax revenues fall short of expenditures over the fiscal year.
B. Discretionary fiscal spending is used to achieve macro equilibrium.
C. The U.S. Treasury engages in refinancing activities.
D. The government uses fiscal policy.
A. Tax revenues fall short of expenditures over the fiscal year.
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Deadweight loss declines in size when a unit of output is produced for which
A. consumer surplus exceeds producer surplus. B. marginal cost exceeds marginal benefit. C. producer surplus exceeds consumer surplus. D. maximum willingness to pay exceeds minimum acceptable price.
Everything else held constant, an increase in the required reserve ratio will mean ________ in the M2 money multiplier and ________ in the M2 money supply
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
According to Arthur Schlesinger, Jr., government spending
a. may grow more slowly during conservative periods, but will never contract. b. follows a natural cycle of increases during liberal periods and decreases during conservative periods. c. grows at the same rate under both liberal and conservative leadership; only the distribution (defense v. civilian) of the spending changes. d. reflects attempts by political leaders to reject the dominant political ideology of their youth.
Almost all of the FICA tax deductions from a worker's paycheck is put into an account and saved for that worker's retirement years
a. True b. False Indicate whether the statement is true or false