Which of the following is not true with regard to the burden of the U.S. national debt?
A. The debt does burden future generations to the extent that it is sold to foreigners.
B. Budget deficits are not appropriate for stabilization purposes under any circumstances.
C. The debt will reduce the nation’s capital stock if incurred during a fully employed economy.
D. The large deficits of the 1980s and early 2000 were particularly worrisome because they were not attributable to recessions.
Answer: D
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The value of a country's exports during a particular year was $120,000 and the value of its imports was $85,000. Which of the following is true?
A) The country ran a fiscal deficit of $205,000 during that year. B) The country ran a trade surplus of $35,000 during that year. C) The country ran a budget surplus of $205,000 during that year. D) The country ran a trade deficit of $35,000 during that year.
What is the idea of fairness based on fair rules?
What will be an ideal response?
What was the goal of Operation Twist?
A) to reduce long-term interest rates and increase short-term interest rates B) to reduce short-term interest rates and increase long-term interest rates C) to reduce both short-term and long-term interest rates D) to increase both short-term and long-term interest rates
Which of the following is a lagging economic indicator?
A) Housing starts B) Employment C) Retail sales D) Inflation