The "official measure" of the deficit (the one reported by the government)
A) tells us the change in government nominal debt.
B) is equal to nominal interest payments on the debt plus the primary deficit.
C) overestimates the real budget deficit whenever the inflation rate is positive.
D) all of the above
E) none of the above
D
You might also like to view...
In the United States
A) there are more households with incomes below the mean income than above the mean income. B) there are more households with incomes above the mean income than below the mean income. C) the mode income equals the mean income. D) the income distribution is bell shaped.
Refer to the above figure. Other things being equal, when the government imposes a price floor at P2, then we would expect
A) the quantity demanded is Q2. B) a surplus will occur. C) price to decline until an equilibrium is achieved at P0. D) consumers to bid against each other for goods and force the price even higher.
The main objective of advertising for a monopolistically competitive firm is
A) to differentiate the product and boost demand. B) to reduce cost. C) to earn long run profits. D) none of the above.
The combined effect on the loanable funds market of a new technology that increases the marginal physical product of capital and a shift in consumers' expectation of future prices, now expecting they will be lower than they earlier expected, is a(n)
a. increase in the interest rate b. decrease in the interest rate c. decrease in the quantity demanded and quantity supplied of loanable funds but unclear in what direction the interest rate will change d. increase in the quantity demanded and quantity supplied of loanable funds but unclear in what direction the interest rate will change e. shift in the demand curve to the left and the supply curve of loanable funds to the right