If an economy operates below potential income, the actual deficit is:
A. larger than the structural deficit.
B. comparable to the structural deficit.
C. smaller than the structural deficit.
D. the same as the structural deficit.
Answer: A
You might also like to view...
Which is greater, gross domestic product or national income? By how much?
a. Gross domestic product < National income; indirect business taxes, depreciation, and income earned by foreigners in the United States b. Gross domestic product < National income; net exports and indirect business taxes c. Gross domestic product > National income; net exports and indirect business taxes d. Gross domestic product > National income; indirect business taxes, depreciation, and income earned by foreigners in the United States
The federal funds rate isThe federal funds rate is
A. The required reserve ratio that the federal reserve requires banks to maintain B. The interest rate that banks charge for loans to its important commercial borrowers C. The interest rate that banks charge each other for overnight loans
If the world price for a good is above a nation's pre-trade equilibrium price, then the nation
A) will export the good. B) will import the good. C) will neither export nor import the good. D) cannot gain from trade. E) Both C and D.
When an asset is described as being highly liquid, which one of the following characteristics does it possess?
A. The asset holds its value over time. B. It is easily and readily converted into money without any loss in purchasing power. C. The face value of the asset is somewhat less than its value when converted into currency. D. It earns a high rate of interest, so its purchasing power is maintained when prices rise.