A balanced budget occurs when
A) the national debt is reduced to zero dollars.
B) a budget deficit during one year is matched by a budget surplus in the next year.
C) transfer payments equal tax revenues.
D) government expenditures equal tax revenues.
E) the deficit-GDP ratio equals one.
D
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If average cost is positive
A) marginal cost equals average cost. B) marginal cost exceeds average cost. C) marginal cost is less average cost. D) Not enough information is given.
There is a flexible exchange rate system and only two countries in the world, the United States and Mexico. An increase in income growth in Mexico relative to income growth in the United States will cause the
A) dollar to appreciate. B) peso to depreciate. C) dollar to depreciate. D) a and b E) There is not enough information to answer the question.
In order to have adequate water access, based on the World Bank definition, there should be
A. A public lake or stream within a mile of everyone's home. B. A private water pipe outside everyone's home. C. Indoor plumbing in at least one-quarter of the homes in a country. D. A protected public water pipe within half a mile of everyone's home.
If the real interest rate is 2 percent and inflation rate is 1 percent, what is the nominal interest rate?
A. 1 percent B. 0 percent C. 2 percent D. 3 percent