The difference between the national debt and a federal budget deficit is
A) nothing; the national debt and the budget deficit are the same thing.
B) the federal budget deficit represents the total amount of outstanding government debt while the national debt includes only the increase in the debt during the current year.
C) the national debt represents the cumulative effect of all previous budget deficits and surpluses, while the federal budget deficit reflects only the additions to the debt during the current year.
D) the national debt is financed primarily through government bonds, while the deficit is financed through taxes.
C) the national debt represents the cumulative effect of all previous budget deficits and surpluses, while the federal budget deficit reflects only the additions to the debt during the current year.
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What are the tools available to governments to mitigate cycles of boom and bust? Why do these tools fail?
What will be an ideal response?
The U.S. government uses export subsidies extensively to stimulate exports
a. True b. False Indicate whether the statement is true or false
Refer to the graph shown. Which supply curve is inelastic?
A. A B. B C. C D. None of the answers is correct.
Quotas and tariffs can:
A. have the same effect on the price of a domestically produced good if they are set appropriately. B. yield the same amount of tax revenue if they are set appropriately. C. never have the same effect on imports and import prices. D. both increase international trade by the same amount if set appropriately.