The government's budget constraint is best represented by which of the following equations?
A) Government purchases of goods and services + Transfer payments + Interest payments on existing debt = Tax revenue + Newly issued government bonds + Seigniorage
B) Government purchases of goods and services + Transfer payments + Tax revenue = Interest payments on existing debt + Newly issued government bonds + Seigniorage
C) Tax revenue - Transfer payments = Government purchases of goods and services + Interest payments on existing debt + Newly issued government bonds + Seigniorage
D) Government purchases of goods and services + Newly issued government bonds + Interest payments on existing debt = Transfer payments + Tax revenue + Seigniorage
A
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Raising an existing tariff on grapes from Chile will: a. increase U.S. imports of Chilean grapes
b. increase U.S. consumption of domestically produced grapes. c. increase total U.S. consumption of grapes. d. do all of the above.
A typical firm in the US economy would he classified as
a. Perfectly competitive. b. Imperfectly competitive. c. A duopolist d. An oligopolist
The random walk theory says that
A) stock prices follow a trend for varying periods of time. B) successive stock prices increase more than they decrease. C) successive stock prices are dependent on the weighted average of the previous week's prices. D) successive stock prices are independent of each other.