If the cyclically-adjusted budget shows a deficit zero and the actual budget shows a deficit of about $150 billion, it can be concluded that there is:
A. Built-in stability
B. A cyclical deficit
C. An expansionary fiscal policy
D. A contractionary fiscal policy
B. A cyclical deficit
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Classical economists traditionally believed that:
a. there are three motives for demanding money. b. a change in the money supply can affect real GDP. c. the transactions demand for money influences the velocity of money. d. the velocity of money is constant. e. the economy does not always operate at full employment.
Identify the correct statement
a. The removal of financial market regulations has lowered the probability of a financial crisis to zero. b. Investment in residential housing in the U.S. was less volatile during the era prior to the removal of Regulation Q. c. Investment in residential housing in the U.S. was more volatile after the removal of Regulation Q. d. The removal of financial market regulations lowered output volatility. e. The removal of financial market regulations increased variability in consumer spending.
When a consumer must take some sort of additional action to receive a lower price, the consumer is being subjected to:
A. "bait and switch" sales tactics. B. the "rebate and wait" method of price discrimination. C. perfect price discrimination. D. the "hurdle" method of price discrimination.
The demand for the Franconian franc in the foreign exchange market equals 11,000 - 25,000e and the supply of francs in the foreign exchange market equals 9,000 + 25,000 e, where e is the nominal exchange rate expressed in U.S. dollars per franc. If the franc is fixed at 0.25 U.S. dollars per franc, then the franc is ________ and Franconia has a balance-of-payments ________.
A. overvalued; surplus of 10,500 francs B. undervalued; surplus of 10,500 dollars C. undervalued; deficit of 10,500 francs D. overvalued; deficit of 10,500 francs