Other things being equal, during a period when the federal government issues more Treasury securities to borrow funds
A. the flow of government expenditures during that period must exceed the stock of tax collections.
B. the flow of government expenditures during that period must exceed the flow of tax revenues.
C. the stock of government deficit spending during that period must exceed the stock of tax collections.
D. the stock of government deficit spending during that period must exceed the flow of tax revenues.
Answer: B
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The federal funds market is the market in which:
A. banks borrow from the Federal Reserve Banks. B. U.S. securities are bought and sold. C. banks borrow reserves from one another on an overnight basis. D. Federal Reserve Banks borrow from one another.
Answer the following statements true (T) or false (F)
1. The short-run supply curve of a purely competitive industry tends to be steeper than the long-run supply curve. 2. The long-run supply curve for a competitive, decreasing-cost industry is downward-sloping. 3. The reason why the long-run supply curve for a purely competitive industry may be upward-sloping is because of diminishing marginal returns. 4. An upward-sloping long-run supply curve indicates a constant-cost industry. 5. Productive efficiency refers to a condition where marginal cost is equal to marginal revenue in the long run.
When a market is in equilibrium, both buyers and sellers do not perceive a benefit from changing their behavior. Why?
What will be an ideal response?
The long-run supply curve for a competitive industry
a. may be horizontal if entry into the industry lowers average total cost. b. may be upward-sloping if higher-cost firms enter the industry. c. will be horizontal if there is free entry into the industry. d. will be upward-sloping if there are barriers to entry into the industry.