When government runs a budget deficit, it makes up the difference by:
A. issuing government bonds.
B. increasing transfer payments.
C. paying down outstanding debt.
D. increasing public saving.
Answer: A
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The GDP growth rate is report at annualized rate. This means each quarter’s growth rate is ______ and reported as if the economy had the same growth rate for the entire year.
a. divided by 12 b. multiplied by 4 c. divided by 4 d. multiplied by 12
Suppose that the U.S. personal income tax was eliminated and replaced with a fixed tax that raised the exact same amount of revenue. The multiplier would be
A. larger. B. unchanged. C. smaller. D. incalculable.
Purchases of foreign assets by U.S. residents are tabulated in the U.S. balance of payments as a:
A. capital inflow. B. capital outflow. C. current account outflow. D. unilateral transfer.
Collusion:
A) is necessary to achieve an outcome better than a Nash equilibrium. B) is legal in the United States. C) always results in a Nash equilibrium. D) eliminates cheating.