The government's budget deficit refers to the:
A. Total amount of debt that the government has incurred over the years
B. Difference the nation's amount of exports and its total amount of imports
C. Gap between high government spending and its lower tax revenues
D. Decrease in the amount of government spending form one year to the next
C. Gap between high government spending and its lower tax revenues
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Refer to Figure 15-5. In the figure above, the movement from point A to point B in the money market would be caused by
A) a decrease in real GDP. B) an open market sale of Treasury securities by the Federal Reserve. C) an increase in the required reserve ratio by the Federal Reserve. D) an increase in the price level.
According to Porter's Five Competitive Forces Model, similar products produced by different firms within the industry affects a firm's ability to raise prices far more than substitutable products produced outside the industry
Indicate whether the statement is true or false
The sum of the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) always equals:
a. 1. b. 0. c. the interest rate. d. the marginal propensity to invest (MPI).
Beginning from a position of long-run equilibrium, suppose there is an increase in the aggregate demand curve. After adjustment and comparing the economy's new long-run equilibrium with its original long-run position, the result would be an increase in: a. real GDP
b. the price level (CPI). c. the unemployment rate. d. a and b, but not c.