An economic expansion tends to cause the federal budget deficit to ________ because tax revenues ________ and government spending on transfer payments ________
A) increase; rise; falls
B) decrease; rise; falls
C) decrease; fall; rises
D) increase; fall; rises
B
You might also like to view...
In Lithasia, the opportunity cost of producing a chair is two tables and in Barylia, the opportunity cost of producing a chair is 1/2 table. Which of the following statements is true?
A) Barylia has a comparative advantage in producing chairs. B) Lithasia has a comparative advantage in producing chairs. C) Barylia has a comparative advantage in producing tables. D) Lithasia has a comparative disadvantage in producing tables.
Price taking producers make zero economic profit when price falls
A. at the lowest point of the average cost curve B. at the point where marginal cost crosses average cost C. at the lowest point of the marginal cost curve D. both (a) and (b) E. both (a) and (c) F. both (b) and (c) G. All of the above H. None of the above
According to the above table, if the marginal revenue product is $24, how many workers will the profit maximizing monopsonist hire?
A) 4 B) 5 C) 6 D) 7
Which of the following statements is correct?
a. In the short run, interest rate differentials have the greatest impact on exchange rates. b. In the medium run, differences in growth rates of aggregate demand have the greatest impact on exchange rates. c. In the long run, price and inflation differentials have the greatest impact on exchange rates. d. All of the above are correct.