Refer to Table 15.3. Based on the data in the table, the primary budget deficit necessary to make fiscal policy sustainable in Saldinia is ________ of GDP
A) -5.3%
B) -1.1%
C) 1.1%
D) 6.5%
B
You might also like to view...
The index that is not based on a fixed market basket of goods and services is the
A) CPI. B) PPI. C) Wholesale Price Index. D) GDP Price Deflator.
The Fed seldom uses the reserve requirement ratio to influence the money supply. What is the reason for this?
A) It is difficult and costly for the Fed to monitor compliance. B) Frequent manipulation of reserve requirements would require bankers to constantly adjust their lending policies to changing requirements, which could be destabilizing for financial markets. C) The Fed would like to discourage banks from making loans indiscriminately and therefore sets just one standard. D) Reserves in excess of a certain amount will not be covered by the Federal Depository Insurance Corporation.
Which of the diagrams illustrate(s) the effect of a decline in the price of irrigation equipment on the market for corn?
A. B only.
B. C only.
C. B and C.
D. D only.
Refer to the diagrams. Suppose that government undertakes fiscal policy designed to increase aggregate demand from AD 1 to AD 2 and thereby to increase GDP from X to Z. In terms of graph B, which of the following might explain why GDP increases to Y rather than to Z?
A. Depreciation of the dollar.
B. Reduction in tariffs imposed by our trading partners.
C. Decrease in the saving schedule.
D. Crowding-out effect.