Answer the next question using the following budget information for a hypothetical economy. Assume that all budget surpluses are used to pay down the public debt. Government SpendingTax RevenuesGDPYear 1$450$425$2,000Year 25004503,000Year 36005004,000Year 46406205,000Year 56805804,800Year 66006205,000 If year 1 is the first year of this nation's existence and year 6 is the present year, this nation's public debt is
A. $275 billion.
B. $3,540 billion.
C. $100 billion.
D. $230 billion.
Answer: A
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The aggregate demand curve or schedule shows the relationship between the total demand for output and the ________.
A. income level B. price level C. interest rate D. real GDP
Which of the following creates an obstacle to pursuing freer international trade?
a. Consumers do not recognize their potential gains b. Losses are widespread c. Domestic producers do not recognize their potential losses d. Government has plenty of political will and support to remove trade barriers e. Consumers can easily organize to demand free trade
A monopoly earns the most profit by charging a price where demand is inelastic
a. True b. False Indicate whether the statement is true or false
Sam, a U.S. citizen, buys bonds issued by a Greek company that bottles olives. Sam's purchase is
a. foreign direct investment. By itself it increases U.S. net capital outflow. b. foreign direct investment. By itself it decreases U.S. net capital outflow. c. foreign portfolio investment. By itself it increases U.S. net capital outflow. d. foreign portfolio investment. By itself it decreases U.S. net capital outflow.