The size of the debt will begin to shrink if the federal government balances its budget.
Answer the following statement true (T) or false (F)
False
Whenever there's a budget deficit, the national debt increases. Therefore, by balancing by budget, the magnitude of the debt would not shrink; rather the debt would cease to expand.
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Suppose the price of good x in country A is lower than the price of good x in country B when no trade is permitted. In the absence of transportation costs, if the supply curve for good x in the two countries is sufficiently elastic, free trade in good x implies that country B will stop producing x.
Answer the following statement true (T) or false (F)
Refer to Table 7-6. Which country has a comparative advantage in producing swords?
A) Estonia B) Morocco C) both countries D) neither country
The United States has never suffered through periods of hyperinflation in its history
a. True b. False Indicate whether the statement is true or false
Which of the following statements is FALSE?
A) As society increases its wealth, the problem of scarcity disappears. B) The factors of production are used to produce outputs that help society satisfy its wants. C) Even though a society faces the problem of scarcity, it does not necessarily suffer from poverty. D) Land and labor are both factors of production.