The government finances the budget deficit by
a. borrowing from the public.
b. borrowing solely from the Federal Reserve Bank.
c. printing currency in the amount of the budget deficit.
d. requiring that budget surpluses occur every other year to pay off the deficits.
a
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In the figure above, the poorest 40 percent of all households receive what share of income?
A) 10 percent B) 20 percent C) 40 percent D) 60 percent
The multiplier principle illustrates that
a. an increase in investment spending will be multiplied into a larger increase in GDP. b. an increase in GDP will be multiplied into a larger amount of investment spending. c. an increase in GDP will be multiplied into a larger increase in consumer spending. d. investment spending is always a multiple of consumer spending.
The various quantities of output that all market participants are willing and able to buy at alternative price levels in a given time period is:
A. Market demand. B. Aggregate demand. C. Market supply. D. Aggregate supply.
Refer to Figure 6.6, which shows a market for taxi medallions. Without any limit to the number of medallions (taxi licenses), the consumer surplus from consuming taxicab services is represented by:
A. area ABF. B. area ACI. C. area DEH. D. area CEI.