If tax revenues equal 20 percent of total output and government expenditures equal 25 percent of total output, then there is a:
A. trade surplus.
B. trade deficit.
C. government budget deficit.
D. government budget surplus.
Answer: C
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The Fed's policy actions of reacting to higher inflation by raising the real interest rate during 2004-2006 were
A) upward movements along the monetary policy curve. B) downward movement along the monetary policy curve. C) upward shifts of the monetary policy curve. D) downward shifts of the monetary policy curve.
Economists are unanimous in their belief that advertising is socially inefficient
a. True b. False Indicate whether the statement is true or false
An increase in capital will increase real GNP per person
a. more in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment. b. more in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment. c. less in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment. d. less in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment.
Of the in-kind programs, food stamps have the highest total annual cost
Indicate whether the statement is true or false