In the figure above, if there is no Ricardo-Barro effect, the government has a budget ________ because the ________
A) surplus of 0.2 trillion; SLF curve lies to the right of the PSLF curve.
B) deficit of 0.2 trillion; SLF curve lies to the right of the PSLF curve.
C) deficit of 0.4 trillion; SLF curve shows a smaller quantity of LF than the PSLF curve.
D) surplus of 0.4 trillion; SLF curve shows a larger quantity of LF than the PSLF curve.
E) surplus of -0.2 trillion; SLF curve lies to the right of the PSLF curve.
A
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An increase in wealth ________ saving supply, and the supply of loanable funds curve ________
A) does not change; does not shift B) decreases; shifts rightward C) increases; shifts rightward D) increases; shifts leftward E) decreases; shifts leftward
If the U.S. government were to relax its restrictions on offshore oil well drilling and open drilling in Alaskan national parks, the result to aggregate supply would be to
A) cause a shift in the SRAS to the left. B) cause a shift in the LRAS to the left. C) cause no long-term shifts in AS. D) cause a shift in both LRAS and SRAS to the right.
In the high-income economies of the world, only about 2% of GDP comes from ______________.
a. manufacturing b. agriculture c. services d. textiles
Which of the following is the most likely response to an increase in the U.S. real interest rate?
a. a London bank purchases a U.S. bond instead of a Japanese bond it had considered purchasing b. U.S. firms decide to buy more capital goods c. a U.S. citizen decides to put less money in his savings account than he had planned. d. All of the above are consistent.