The government has a budget surplus if
A) there is no national debt.
B) tax revenue is greater than outlays.
C) government outlays are greater than tax revenue.
D) the budget is balanced.
E) a fiscal stimulus is being used to combat a recession.
B
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Suppose that a mutual fund, Washington Peak Strategic Bond Fund, believes it has hit upon a winning investment strategy.The fund uses an active management strategy to try to outperform the bond market
According to Washington Peak's prospectus, investors need to pay fees of 2 percent annually.Based on the historical success of their active investment strategy, the strategy is projected to generate annual returns (once fees are paid) of 8 percent. A friend of yours is considering investing in Washington Peak and asks you for investment advice. What would you suggest?
The profit maximizing firm produces where total revenue exceeds total cost by the greatest amount
Indicate whether the statement is true or false
Figure 3-12
In , suppose D1 and S1 indicate initial conditions in the market for ice cream. Which of the following changes would tend to shift this market from D1 to D2?
a.
an increase in the price of milk, an ingredient used to produce ice cream
b.
an increase in the price of frozen yogurt, a substitute for ice cream
c.
a decrease in the price of sugar, an ingredient used to produce ice cream
d.
a decrease in consumer income
The precautionary demand for money originates in
A. people's uncertainty and their desire for "mad money." B. fear that prices will rise. C. expectations of economic booms. D. expectations of stock market crashes.