In the formula to calculate the real deficit, which of the following increases the real deficit?
A. A larger debt
B. A smaller nominal deficit
C. A lower inflation rate
D. A lower interest rate
Answer: C
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Use the figure below to answer the following question.
What area represents producer surplus after the government imposes the excise tax on the market?
A. triangle $21a$13 B. square $13ac$9 C. triangle abc D. triangle $1c$9
Investment spending includes expenditures on all of the following except
A. Plants or office buildings. B. Inventory. C. Equipment. D. Stocks and bonds.
In a fixed exchange rate regime, an increase in the price level will cause which of the following?
A) a real appreciation and a leftward shift in the aggregate demand curve B) a real appreciation and no shift in the aggregate demand curve C) a real depreciation and a rightward shift in the aggregate demand curve D) a real depreciation and no shift in the aggregate demand curve E) no change in the real exchange rate, and no change in aggregate demand
According to Dallas Federal Reserve economist W. Michael Cox, taken to its extreme, the logic of "buying American" implies that:
A. we should buy everything from abroad. B. people should only consume what they can produce themselves. C. consumers should only buy goods from other states. D. the best quality goods are found in the United States.