If government purchases are $400 million, taxes are $700 million, and transfers are $200 million, which of the following is true?
A) Public saving is $100 million. B) The budget deficit is $100 million.
C) The budget deficit is $500 million. D) Public saving is $500 million.
A
You might also like to view...
Open market purchase of government securities by the Fed increases the federal funds rate
Indicate whether the statement is true or false
If a change in the price of one good does not cause a shift in the demand curve of another good, then the two goods are:
A. substitutes. B. complements. C. normal. D. not related.
If a monopolistically competitive firm is earning profits in the short run:
A. it is acting like a perfectly competitive firm. B. other firms have an incentive to enter the market. C. barriers to entry will allow the firm to enjoy them in the long run as well. D. it should leave the industry before it gets competed away.
Buyers in the market for used guitars are getting more pessimistic about the possibility of getting a good guitar. This will cause the price of used guitars to ________ and the percentage of good used guitars to ________.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease