All of the following are possible private-sector adjustments to an increase in the government's budget deficit except
A) increasing private savings.
B) decreasing investment.
C) decreasing expenditures on transfer programs.
D) increasing the trade deficit by increasing imports and/or decreasing exports.
C
You might also like to view...
It is not sufficient for profit maximization that a production plan has all marginal revenue products equal to input prices -- because it must also be the case that the (marginal) technical rate of substitution is equal to the ratio of input prices (in absolute value).
Answer the following statement true (T) or false (F)
Households are said to have positive wealth when
A. the market value of their assets is zero. B. the value of their assets is equal to the debts they owe. C. the value of their assets is greater than the debts they owe. D. the value of their assets is less than the debts they owe.
Which of the following statements about urban sprawl and traffic congestion is the best illustration of a normative statement?
A. Traffic congestion has increased in the last 20 years. B. Snarled traffic cost motorists in the 85 largest U.S. cities 3.5 billion hours. C. Because urban sprawl is the result of individual choice, it is okay. D. The average U.S. urban traveler is stuck in road traffic 46 hours a year.
Which of the diagrams best portrays the effects of an increase in resource productivity?
Use the following diagrams for the U.S. economy to answer the following question.
A. A.
B. B.
C. C.
D. D.