Suppose that the federal government had a budget deficit of $100 billion in year 1 and $90 billion in year 2, but that it experiences budget surpluses of $40 billion in year 3 and $30 billion in year 4. Also assume that the government uses any budget surpluses to pay down the public debt. At the end of these four years, the Federal government's public debt would have
A. decreased by $120 billion.
B. increased by $120 billion.
C. increased by $260 billion.
D. decreased by $260 billion.
Answer: B
You might also like to view...
The analysis of economic outcomes before and after some economic variable is changed is referred to as:
A) cardinal research. B) comparative statics. C) Pareto analysis. D) marginal study.
What is a production possibilities frontier? What do points along the frontier represent? What do points inside and outside the frontier represent?
What will be an ideal response?
Suppose that, in the long run, the price of feature films rises as the movie production industry expands. We can conclude that movie production is a(n):
a. increasing-cost industry. b. constant-cost industry. c. decreasing-cost industry. d. marginal-cost industry.
Which of the following affected aggregate demand during the recession of 2008-2009?
a. a decline in residential construction and a decrease in lending b. a decline in residential construction but not a decrease in lending c. a decrease in lending but not a decline in residential construction d. neither a decrease in residential construction nor a decrease in lending