The government budget constraint tells us that the budget deficit is equal to
A) interest on the debt.
B) the primary deficit.
C) the primary deficit plus interest on the debt.
D) imports minus exports.
E) the primary deficit plus the trade deficit plus interest on the debt.
C
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Which of the following pairs of variables are likely to be positively correlated?
A) Income and consumption B) Price and consumption C) Education and unemployment D) Availability of health care and death rate
The U.S. balance of payments status may improve when
A) the inflation rate increases in the United States relative to other countries. B) political instability in other countries increases. C) the world demand for U.S. products falls. D) the American government increases its spending on foreign aid.
If the graph shown represents Donna's budget constraint, and the price of earrings were to decrease, the slope of Donna's budget constraint would become:
A. steeper, reflecting the fact that hairbands are now relatively less expensive.
B. flatter, reflecting the fact that hairbands are now relatively more expensive.
C. steeper, reflecting the fact that earrings are now relatively less expensive.
D. flatter, reflecting the fact that earrings are now relatively more expensive.
The "underground economy" refers to
A) the buying and selling of goods that is concealed from the government. B) the production of goods and services used by the government for covert spy operations. C) the sector of the economy that earns profits that are higher than average. D) the formal sector of the economy in developing countries.