The national debt
a. exists because of past government budget deficits
b. is the difference between the government's spending and revenue in a given year
c. is the amount households owe on credit cards, mortgages and other loans
d. is a flow variable
e. is the same as the government's budget deficit
A
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________ decreases a firm's capital stock, and ________ increases its capital stock
A) Saving; depreciation B) Depreciation; investment C) Time; depreciation D) Saving; investment E) Investment; saving
A bank reports reserves of $100,000, government securities of $50,000, loans of $750,000, and checkable deposits of $900,000. The desired reserve ratio is 10 percent. What is the amount of excess reserves for this bank? Show your work
What will be an ideal response?
Gasoline taxes that are typically used for highway construction and maintenance are consistent with which of the following principles of taxation?
A) the ability-to-pay principle B) the vertical-equity principle C) the horizontal-equity principle D) the benefits-received principle
Under a laissez-faire system,
A. government coordinates with firms to determine output and prices for goods and services. B. input-output analysis is used by planning agencies to determine output levels. C. the demand and supply process determines output and prices of goods and services. D. firms coordinate with each other to determine output and price levels for goods and services.