In the formula to calculate the real deficit, which of the following decreases the real deficit?
A. A lower inflation rate
B. A larger nominal deficit
C. A higher interest rate
D. A larger debt
Answer: D
You might also like to view...
A crisis in the Middle East drastically raises the price of petroleum. If the aggregate demand curve does not shift, then aggregate supply will ________, real GDP will ________, and the price level will ________
A) increase; remain the same; increase B) decrease; decrease; increase C) increase; increase; increase D) remain the same; increase; increase E) decrease; remain the same; decrease
(I) A monetary policy that results in price stability will encourage the realization of gains from trade and thereby help promote economic growth. (II) High tariffs and restrictive quotas will encourage rapid economic growth
a. I is true; II is false. b. II is true; I is false. c. Both I and II are true. d. Both I and II are false.
If a binding price ceiling is imposed on the baby formula market, then
a. the quantity of baby formula demanded will increase. b. the quantity of baby formula supplied will decrease. c. a shortage of baby formula will develop. d. All of the above are correct.
An annual income of less than $24,000 is
A. In-kind income. B. Below the poverty threshold. C. The poverty rate. D. Extreme poverty.