Which of the following would decrease the size of a federal budget deficit?
a. A recession
b. An increase in defense spending
c. An increase in the use of automatic stabilizers
d. An increase in taxes
e. An increase in transfer payments
d
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Refer to the above figure. At a price of two cents, the quantity of bubble gum demanded will be
A) 3. B) 2. C) 4. D) 5.
If U.S. citizens decide to save a larger fraction of their incomes, the real interest rate
a. decreases, the real exchange rate of the dollar depreciates, and U.S. net capital outflow increases. b. decreases, the real exchange rate of the dollar appreciates, and U.S. net capital outflow decreases. c. increases, the real exchange rate of the dollar appreciates, and U.S. net capital outflow decreases. d. increases, the real exchange rate of the dollar depreciates, and U.S. net capital outflow increases.
An increase in aggregate demand is most likely to result in
A. inflation. B. recession. C. economic stagnation. D. a decrease in real GDP.
For the perfectly competitive firm, price
A) equals average revenue and marginal revenue. B) equals average total cost. C) changes as output changes. D) depends on the fixed cost for the firm.