Suppose the federal government had budget surpluses of $80 billion in year 1 and $120 billion in year 2 but had budget deficits of $10 billion in year 3 and $40 billion in year 4. Also assume that it used its budget surpluses to pay down the public debt. At the end of these four years, the federal government's public debt would have
A. increased by $50 billion.
B. decreased by $200 billion.
C. increased by $150 billion.
D. decreased by $150 billion.
Answer: D
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Which of the following is true? a. Checking account deposits and time deposits constitute assets of banks
b. M2 includes M1, plus saving accounts, time deposits (except for some large-denomination certificates of deposits), and money market mutual funds. c. reserves times the required reserve ratio equals deposits. d. Money is destroyed when banks make loans.
Under the gold standard, ________ if the country's overall balance of payments remained in balance.
A. gold would enter the country B. gold would leave the country C. no gold would enter or leave the country D. Both A and B are correct.
Recessionary gap is the amount by which the equilibrium level of real GDP exceeds potential GDP.
Answer the following statement true (T) or false (F)
What are indivisible inputs and what are their implications for economies of scale?
What will be an ideal response?