A federal budget ________ occurs when the government spends less than it collects in taxes.
A. surplus
B. deficit
C. equilibrium
D. floor
Answer: A
You might also like to view...
In an open economy with a given level of real interest rates and risk, an increase in real interest rates abroad will ________ capital inflows and ________ the equilibrium domestic real interest rate.
A. increase; decrease B. increase; increase C. decrease; increase D. decrease; decrease
Which of the following is likely to happen during a boom?
A) The Fed will increase the federal funds rate. B) The Fed will lower the federal funds rate. C) The Fed will increase the supply of money. D) The Fed will lower the reserve requirement.
Assume that the money stock is the intermediate target and money demand is totally interest- inelastic. Then, the
a. LM schedule will be horizontal. b. LM curve schedule would be vertical. c. IS curve would be horizontal. d. None of the above
Which of the following best defines the vicious circle of poverty?
a. Countries are poor because they cannot afford to save and invest. b. Countries are poor because of high population growth. c. Countries are poor because of lack of education and training for workers. d. Countries are poor because of poor international credit.