When the government runs a budget deficit, we would expect to see that
A) public saving is positive. B) private saving will fall.
C) G + TR < T. D) investment will fall.
D
You might also like to view...
Which area represents the net gain to society? Should the reduction in output from QC to QE take place? Why or why not?
Use the following graph of the refined petroleum market to answer the questions below.
Suppose the United States spends more on foreign goods and services than foreigners spend on our goods and services and the United States sells no foreign assets. Then the
A) United States must borrow an amount equal to national saving. B) United States must borrow an amount equal to imports minus exports. C) rest of the world may or may not finance the U.S. trade deficit. D) United States must borrow an amount equal to consumption expenditure plus investment.
The relationship that implies that the nominal interest rate is equal to the real interest rate plus expected inflation is called the
A) exchange rate equation. B) Fisher equation. C) interest rate equation. D) term structure of interest rates.
Using the labels on the graph below, the total cost for both firms at the cost-effective solution is ________, and the excess cost from using the uniform standard is___________
a. ABCGH; CGH b. ACH; CGH c. ACDEH; CDE d. ACH; CDE
