If the U.S. government runs a budget deficit (G ? T), that deficit must be financed by an excess of
a. T over G.
b. C over T plus G.
c. investment by American businesses and individuals.
d. S over I by American businesses and individuals, or by borrowing from foreigners.
d
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To borrow funds between tax payment dates, city governments can issue
A) tax anticipation notes. B) corporate bonds. C) general obligation bonds. D) revenue bonds.
One News Wire article in the text is titled "Fed Cuts Key Interest Rate Half-Point to 1 Percent." Which of the following is the Fed trying to accomplish as a result of this action?
A. A leftward shift of aggregate demand. B. A rightward shift of aggregate demand. C. A leftward shift of aggregate supply. D. A rightward shift of aggregate supply.
In which case can we be sure real GDP rises in the short run?
a. foreign economies expand and government purchases rise. b. foreign economies expand and government purchases fall. c. foreign economies contract and government purchases fall. d. foreign economies contract and government purchases rise.
At the point where the demand and supply curves for a product intersect,
What will be an ideal response?