The real deficit is the nominal deficit adjusted for inflation's effect on existing debt.
Answer the following statement true (T) or false (F)
True
See the definition of real deficit in the text.
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An innovation cycle could be caused by
a. a decreasing capital stock b. a sharp increase in national income c. a climatic change d. a sharp increase in the pace of technological change e. a decrease in the demand for housing
Since World War II, the share of corporate income tax collections in total federal revenue has been:
a. increasing rapidly. b. declining rapidly. c. increasing slowly. d. declining generally.
Pollution is a
a. problem that is entirely unrelated to the parable called the Tragedy of the Commons. b. problem that cannot be remedied with regulations or corrective taxes. c. negative externality that can be viewed as a public-goods problem. d. negative externality that can be viewed as a common-resource problem.
Stabilization policies can best be described as policies that
A. attempt to eliminate recession and/or inflation in the economy. B. use changes in government spending to promote an equitable income distribution. C. use changes in the money supply to lower income tax rates. D. eliminate poverty through the adoption of work incentives.