When the government runs a deficit, which of the following is true?
A) G > T + TR B) T < G + TR C) T > TR - G D) G > TR - T
B
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Moving upward along the short-run aggregate supply curve results in a ________ in the price level and ________ in real GDP
A) rise; an increase B) rise; a decrease C) fall; an increase D) fall; a decrease
Hurricane Katrina destroyed oil and natural gas refining capacity in the Gulf of Mexico. This subsequently drove up natural gas, gasoline, and heating oil prices. As a result, this should
A) move the economy down along a stationary short-run aggregate supply curve. B) shift the short-run aggregate supply curve to the right. C) move the economy up along a stationary short-run aggregate supply curve. D) shift the short-run aggregate supply curve to the left.
Assume you borrow funds to buy a new car at 10 percent interest and you think that the economy-wide rate of inflation over the life of the loan will be 8 percent
If you are correct in your assumption, your real rate of interest on the car loan will be A) 2 percent. B) 8 percent. C) 10 percent. D) 18 percent.
Gold is sold in world markets, usually priced in terms of troy ounces. In the market for gold, the price elasticity of demand for gold would be expressed as
A) the number of troy ounces of gold sold. B) the number of whatever currency is used in purchasing the gold. C) the number of dollars spent on gold. D) a unitless number.