There is a federal budget deficit when
A) the government spends more that it collects in taxes.
B) the government spends less that it collects in taxes.
C) the government spends the same amount it collects in taxes.
D) taxes are too high.
A
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When inflation is much higher than expected, which of the following is true?
a. Nominal incomes are lower than expected. b. Real interest rates are higher than expected. c. Income is redistributed from those whose expenditures are fixed toward those who receive a fixed income. d. Nominal interest rates are lower than expected. e. Real interest rates are lower than expected.
If the government runs a deficit, which of the following will be true?
a. T > G - TR b. T < G - TR c. T > G + TR d. T < G + TR
If a market basket of goods cost $100 in the base year and $110 in a later year, then average prices have increased by:
A. 110 percent. B. 100 percent. C. 90 percent. D. 10 percent.
In which industry or sector of the economy is output least likely to be affected by the business cycle?
What will be an ideal response?