Public saving is negative when:
A. there is a government budget deficit.
B. after-tax income of households and businesses is greater than consumption expenditures.
C. the government's budget is balanced.
D. there is a government budget surplus.
Answer: A
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Lou and Alex live together and share household chores. They like to cook some meals ahead of time and eat leftovers. The table below shows the number of rooms they can each clean and the number of meals they can each cook in an hour. Rooms CleanedPer Hour Meals CookedPer HourLou54Alex33For Alex, the opportunity cost of cleaning one room is making ________ meal(s); for Lou the opportunity cost of cleaning one room is making ________ meal(s).
A. 4; 4 B. 3; 5 C. 1; 4/5 D. 1; 5/4
If Congress and the president pursue an expansionary fiscal policy at the same time as the Federal Reserve pursues an expansionary monetary policy, how might the expansionary monetary policy affect the extent of crowding out in the short run?
What will be an ideal response?
The IS curve shifts to the left when
A) taxes increase. B) government spending increases. C) the money supply increases. D) autonomous planned investment spending increases.
Reliable information is
a. costly for consumers, but not for producers b. costly for producers and consumers c. freely available d. costly for producers, but not for consumers e. not relevant to economic decision making