In the mid 1980s, the massive current account deficits were related to massive U.S. government budget deficits
Indicate whether the statement is true or false
TRUE
You might also like to view...
Currently, virtually the entire deficit in the U.S. is
a. cyclical. b. structural. c. transitional. d. frictional.
Frictional unemployment is
A) related to job search difficulties for potential workers. B) a result of a poor match of worker's abilities and skills with current requirements of employers. C) a result of business recessions that occur when aggregate demand is insufficient to create full employment. D) a result of the seasonal pattern of work in specific industries.
The term "free rider"
a. refers to the reduction of incentives for an individual to provide effort. b. describes the privatization of goods and property. c. refers to a situation in which resources are overused and quickly exhausted. d. describes people who did not pay for their ship travel to the colonial US because their relatives would pay their fares once they arrived.
Taxes collected on the basis of the benefits-received principle
a. provide the states with their main sources of revenue b. tend to redistribute income from rich to poor c. collect the same total amount from each individual d. connect the revenue side of the budget with the spending side of the budget e. make it possible for government to spend money on activities that markets can't provide