An increase in the rate of economic growth is likely to
A. increase the federal budget deficit.
B. decrease the federal budget deficit.
C. have no effect on the federal budget deficit.
D. increase the federal budget deficit only if inflation decreases.
B. decrease the federal budget deficit.
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Which of the following is not a characteristic of cost-push inflation?
A. Falling unemployment B. Falling real output C. Automatically self-limiting D. Rising general price level
After an increase in demand in a constant-cost industry, firms will find themselves with higher average cost curves
Indicate whether the statement is true or false
If a firm in a monopolistically competitive market has a demand curve shifting to the right, it is likely that:
A. positive economic profits are being earned. B. firms are entering the market. C. the selling price is less than the average total cost of the firm. D. All of these statements are true.
Brodie sells fish in a perfectly competitive market. Suppose the current market price of fish is $4.50 per pound.
A. Brodie can sell as many fish as he can catch at $4.50 per pound. B. Brodie can charge any price he likes for his fish, but will maximize profit if he sells for less than $4.50. C. Brodie should charge more than $4.50. D. Brodie can charge more than $4.50 and still sell some fish.