The debt-to-GDP ratio increases when the primary deficit ________ or when seigniorage ________
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
B
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The action time lag is the time period that elapses
A. between when an economic problem manifests itself and it is officially acknowledged. B. between the recognition of an economic problem and implementing policies to solve it. C. between implementing policies to solve an economic problem and when the results of that policy can be measured. D. between the beginning of the budgetary process and the final budget resolution.
In Figure 11.1, an increase in consumer wealth is represented by a change in the consumption function from
A) C1 to C3. B) C3 to C1. C) C2 to C1. D) C1 to C2.
Which of the following statements is correct?
a. It is monetary policy and not tax policy that influences interest rates. b. Tax reductions play little role in influencing output. c. Marginal tax rates today are lower than they have ever been in U.S. history. d. Budget deficits show little correlation with interest rates. e. None of the above.
All of the following are true regarding a production quota EXCEPT:
A. a production quota imposes limits on the quantity that individual firms can produce. B. a production quota is a way to raise prices without causing the overproduction that occurs under a price support program. C. a production quota places limitations on supply. D. a production quota does not lead to a deadweight loss.