The federal budget deficit can be reduced by
A) raising taxes.
B) raising government spending.
C) raising transfer payments.
D) higher interest rates.
Answer: A
You might also like to view...
Consider a firm that produces 500,00 . units per year. The firm's fixed costs are $100,000 . marginal costs are $250 and the price per unit is $400 . In the long-run, how low can price go before it is profitable to shut down?
a. $150 b. $250 c. $250.20 d. $400
Say's Law states that:
A. Increased prices lead to increased supply. B. Opportunity costs will always increase. C. Supply creates its own demand. D. High prices cause unemployment.
Aggregate demand:
A. Refers to the collective behavior of all buyers. B. Reflects the total quantity of output produced. C. Increases when the price level increases. D. Is influenced directly by aggregate supply.
Suppose there are two economies, Alpha and Beta, which have the same production possibilities curves and are on the same point on each curve. If Beta then devotes more resources to investment goods than consumer goods when compared to Alpha, then in the future:
A. Beta will not be able to achieve full employment or productive efficiency B. Beta will experience greater economic growth than Alpha. C. Alpha will experience greater economic growth than Beta. D. Alpha will not be able to achieve full employment or productive efficiency.