If the U.S. government runs a budget deficit (G? T), that deficit must be financed by an excess of
A. T over G.
B. C over T plus G.
C. investment by American businesses and individuals.
D. S over I by American businesses and individuals, or by borrowing from foreigners.
Answer: D
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Given the following information about AAA bank:
Bank Deposits $200,000 Loans 100,000 Required Reserves 40,000 Excess Reserves 60,000 What is the reserve ratio? A) 50 percent B) 40 percent C) 20 percent D) 10 percent
Refer to the scenario above. If both the firms are optimizing, which of the following statements is true?
A) Firm B will produce more than Firm A. B) Firm A will produce more than Firm B. C) Both firms will produce the same quantity. D) The quantity produced by both firms will depend on the demand for pens and not the marginal costs.
When banks offer borrowers smaller loans than they have requested, banks are said to
A) shave credit. B) rediscount the loan. C) raze credit. D) ration credit.
In the 19th century, the federal government:
a. allocated funds to help build steamboats. b. passed laws requiring steamboat boiler inspections. c. required steamboat captains to undergo training in order to receive an operating license. d. regulated the fees that steamboats could charge for carrying freight. e. All of the above.