The Clinton administration inherited a budget deficit from its predecessor. President Clinton instituted major tax increases that:
A. increased the budget deficit during his entire term.
B. brought the budget into balance and eventually into a surplus.
C. reduced the budget deficit but increased the federal debt.
D. reduced the size of the deficit but could not eliminate it.
Answer: B
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Cap-and-trade refers to
A) capping emissions and issuing tradeable emissions permits. B) capping revenue from selling emissions permits. C) countries trading fishing rights in international waters. D) capping taxes on firms that engage in international trade. E) capping the benefits gained from pollution controls.
If a $5,000 face-value discount bond maturing in one year is selling for $5,000, then its yield to maturity is
A) 0 percent. B) 5 percent. C) 10 percent. D) 20 percent.
If the income elasticity of demand of houses is exactly 1.40 . Due to a recession, you expect incomes to drop by 25% next year. How will consumers adjust their purchase for houses?
a. Buy 35% more houses b. Buy 35% less houses c. Buy 25% more houses d. Buy 25% less houses
Which of the following is true of earnings from land?
a. An increase in economic rent leads to an increase in the supply of land. b. A decrease in transfer earnings from land leads to an increase in its demand. c. An increase in economic rent does not lead to an increase in the supply of land. d. A decrease in transfer earnings from land leads to a decrease in its supply. e. An increase in economic rent raises the elasticity of supply of land.