If the national debt increases in any given year, it follows that the government:
A. bought bonds in that year to finance a budget deficit.
B. sold bonds in that year to finance a budget deficit.
C. sold bonds in that year to finance a budget surplus.
D. bought bonds in that year to finance a budget surplus.
Answer: B
You might also like to view...
A decrease in the expected future domestic exchange rate causes the demand for domestic assets to shift to the ________ and the domestic currency to ________, everything else held constant
A) right; appreciate B) right; depreciate C) left; appreciate D) left; depreciate
The money supply falls from $900 billion to $850 billion. According to the simple quantity theory of money, the price level will ___________ by __________ percent.
A. rise; 5.6 B. fall; 5.6 C. rise; 6.2 D. fall; 6.2
Refer to the table below. In 2004, what would be the U.S. dollar cost of one euro?
The following table shows the foreign currency per U.S. dollar near the end of January of each year listed.
A. $0.81
B. $1.14
C. $1.23
D. $1.62
Suppose that the total production of an economy consists of 10 oranges and 5 candy bars, each orange sells for $0.20, and each candy bar sells for $1.00. Which expression of the output of this economy is most consistent with the concept of GDP?
A. This economy produces two-thirds oranges and one-third candy bars. B. This economy produces food valued at $1.20. C. This economy produces $7.00 worth of food. D. This economy produces 15 food items.