The United States federal government has a large budget deficit. Long-term projections suggest that under current law, taxes, as a percentage of GDP, will __________ and government spending, as a percentage of GDP, will __________
Fill in the blank(s) with correct word
remain constant; increase
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Which of the following is an open market purchase?
a. When private individuals sell government bonds b. When the Fed sells government bonds c. When private individuals purchase government bonds d. When bond dealers buy government bonds from the fed e. When the Fed buys government bonds
Which of the following statements is correct?
A. Limited access to the health care system is a major cause of rising health care costs. B. Rising health care costs are a major cause of limited access to the health care system. C. Rising health care costs have forced employers to raise real wages above labor productivity. D. The tax subsidy that government provides for health care causes health care to be underconsumed.
Adverse selection and moral hazard problems arise when there is
A. symmetric information. B. too much information. C. asymmetric information. D. complete information
The majority of the income earned in the United States is paid in
A) wages. B) rent. C) profit. D) dividends. E) interest.