The national debt is a stock of IOUs created by the summation of annual deficit and surplus flows.
Answer the following statement true (T) or false (F)
True
The national debt is the accumulated debt of the federal government.
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U.S. labor productivity slowed during the 1970s because of
i. increasing government taxes and regulations on production. ii. the necessity to cope with energy price increases. iii. inflation, which shortened the horizon over which businesses made their borrowing plans. A) i only B) ii only C) iii only D) Both i and ii E) i, ii, and iii
At the end of World War II in 1945, many economists and business managers expected that the U.S. economy would enter a severe recession. At that time, Sears and Montgomery Ward were the two largest department store chains in the country
Sears CEO Robert Wood expected continuing prosperity and opened new stores. Montgomery Ward CEO Sewell Avery expected falling incomes and rising unemployment and closed a number of existing stores. The results of their actions were seen during the late 1940s, when A) Sears declared bankruptcy and was purchased by Montgomery Ward. B) Montgomery Ward weathered the economic downturn in better financial shape than Sears. C) Sears had to close many of the new stores it had opened following the end of the war. D) Sears rapidly gained market share at Montgomery Ward's expense.
In reality, the long-run supply curve tends to be:
A. perfectly elastic. B. perfectly inelastic. C. upward sloping. D. downward sloping.
If net taxes increase by $100 billion and the marginal propensity to consume is 0.6, by how much will GDP change?
a. -$250 billion b. $150 billion c. $250 billion d. -$100 billion e. -$150 billion