What happens to national saving when the government runs a budget surplus? What happens to national saving when the government runs a budget deficit?
What will be an ideal response?
National saving increases when the government runs a budget surplus unless private saving decreases by the amount of the budget surplus, which is unlikely. National saving decreases when the government runs a budget deficit unless private saving increases by the amount of the budget deficit, which is also unlikely.
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When the nominal interest rate falls, the opportunity cost of holding money
A) decreases and there is a movement downward along the demand for money curve. B) increases and there is a movement upward along the demand for money curve. C) decreases and the demand for money curve shifts rightward. D) increases and the demand for money curve shifts rightward. E) decreases and the demand for money curve shifts leftward.
The monopolistically competitive firm will charge a price which is more than that charged by a perfectly competitive firm
a. True b. False Indicate whether the statement is true or false
If the price of good X is $100 and the price of good Y is $40, it follows that the relative price of one unit of good Y is ___________ unit(s) of good X
A) 0.40 B) 0.20 C) 2.50 D) 4.00 E) There is not enough information to answer the question.
Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. What is the opportunity cost to Dan of making a sandwich?
A. 5 smoothies B. 15 smoothies C. 3 smoothies D. 1/3 of a smoothie