In the current? year, a? nation's government spending equals? $100 trillion and its revenues are? $130 trillion. Which of the following is? TRUE?
A. The nation has a current year trade surplus of? $230 trillion.
B. The? nation's national debt equals? $30 trillion.
C. This nation has a current year budget surplus of? $30 trillion.
D. This nation is currently running a budget deficit of? $30 trillion.
Answer: C. This nation has a current year budget surplus of? $30 trillion.
You might also like to view...
Which of the following is not a determinant of a firm's cost functions?
A) The production function. B) The price of labor. C) The productivity of the firm's capital stock. D) The price of the firm's output.
Suppose a monopoly firm has an annual demand function of Qd = 20,000 - 250P, annual variable costs of VC = 16Q + 0.002Q2 and marginal cost of MC = 16 + 0.004Q, where Q is the annual quantity of output. In addition, the firm has an avoidable fixed cost of $25,000 per year. If this firm maximizes its profit, what is the value of aggregate surplus?
A. $247,250 B. $272,250 C. $242,000 D. $217,000
If the reserve ratio is 5 percent, banks do not hold excess reserves, and people do not hold currency, then when the Fed purchases $20 million worth of government bonds, bank reserves
a. increase by $20 million and the money supply eventually increases by $400 million. b. decrease by $20 million and the money supply eventually decreases by $400 million. c. increase by $20 million and the money supply eventually increases by $100 million. d. decrease by $20 million and the money supply eventually decreases by $100 million.
Which best describes the Keynesian transmission mechanism when the money supply increases?
A) The interest rate rises; this in turn reduces investment spending, which in turn raises total expenditures and shifts the AD curve rightward. B) The interest rate falls; this in turn stimulates investment spending, which in turn raises total expenditures and shifts the AD curve leftward. C) The interest rate falls; this in turn stimulates investment spending, which in turn raises total expenditures and shifts the AD curve rightward. D) The interest rate falls; this in turn stimulates investment spending, which in turn lowers total expenditures and shifts the AD curve leftward.