Budget surpluses exist when:
a. government spending exceeds its tax revenues
b. government tax revenues exceed its spending.
c. government spending equals its tax revenues.
d. expansionary fiscal policies increase real GDP and the price level.
b
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Engel's Law, relating to the demand for food,
a. states that food demand is inelastic b. holds more strongly in developed countries c. indicates why the food sector experiences more than proportionate increases in quantities demanded as incomes rise d. shows why food demand expands as citizen education improves e. was only relevant when established in the 1800s
Suppose two economies, the United States and Saudi Arabia, each have a GDP of $1,000 . A U.S. war effort involves the purchase of $100 of Saudi oil, which is financed by selling $100 worth of U.S. government bonds to Saudi Arabia. In subsequent years, GDP remains at $1,000 for each country and the United States imposes a $10 tax to make its debt payments to the Saudis. Now while the United States
is still debt obligated, a. U.S. consumption is $1,000 and Saudi consumption is $1,000 b. U.S. consumption is $990 and Saudi consumption is $990 c. U.S. consumption is $1,010 and Saudi consumption is $990 d. U.S. consumption is $1,000 and Saudi consumption is $1,010 e. U.S. consumption is $990 and Saudi consumption is $1,010
The total monetary returns associated with stock ownership result from dividends and capital gains.
Answer the following statement true (T) or false (F)
All of the following are examples of a nondurable good except
a. a pencil. b. one gallon of gasoline. c. a queen-size bed. d. a pair of shoes.