Suppose the only revenue taken in by the government is in the form of income tax, and the tax rate is 10%. If aggregate income is $800 billion, and government expenditures are $100 billion then the government budget has...
What will be an ideal response?
a deficit of $20 billion
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Of the following, the one that appears in the current account of the balance of payments is
A) an Italian investor's purchase of IBM stock. B) income earned by U.S. subsidiaries of Barclay's Bank of London. C) a loan by a Swiss bank to an American corporation. D) a purchase of a British Treasury bond by the Fed.
The U.N.'s Millennium Aid Goal is for nations to increase their foreign aid levels to 0.7 percent of donor country GDP.
Answer the following statement true (T) or false (F)
Deflation is bad because:
A. wages decline. B. prices decline. C. monetary policy becomes impotent. D. fiscal policy becomes impotent. E. deflation is not bad.
In the above figure, if the firm is producing at Q3 and charging a price of P3, it should
A. increase output and decrease price. B. decrease output and increase price. C. not change output or price. D. shut down.