Explain the differences between a federal budget deficit, a federal budget surplus, and the federal government debt
What will be an ideal response?
A budget deficit refers to a situation in which the government's expenditure is greater than its tax revenue. A budget surplus is a situation in which the government's expenditure is less than its tax revenue. The federal government debt is the total value of U.S. Treasury bonds outstanding.
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A firm that is a price taker faces
A) an elastic supply curve. B) an inelastic supply curve. C) a perfectly elastic demand curve. D) a perfectly inelastic demand curve. E) an elastic but not perfectly elastic demand curve.
For a Nash equilibrium to be possible, all players must ________
A) be able to predict their outcomes associated with all possible actions of the other players B) have a way to communicate with the other players C) have a strategy which allows for collusion D) Both A and B
Which of the following events is likely to reduce the demand for on-campus student housing?
a. a rise in rents for off-campus housing b. more students enrolling at the university c. it becomes less fashionable to live "on campus" d. a rise in dorm fees e. a rise in the incomes of students
If commercial banks are maintaining a 5 percent reserve/deposit ratio and the Fed lowers the required reserve ratio to 3 percent, then banks may ________ their loans and deposits, and the money supply may ________.
A. decrease; increase B. decrease; decrease C. increase; increase D. increase; decrease