The actual budget deficit is equal to the
A) structural deficit minus the cyclical deficit.
B) structural deficit plus the cyclical deficit.
C) cyclical deficit minus the structural deficit.
D) cyclical deficit.
E) structural deficit.
B
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Lee and Cody are playing a game in which Lee has the first move at A in the decision tree shown below. Once Lee has chosen either aggression or cooperation, Cody, who can see what Lee has chosen, must choose either aggression or cooperation at B or C. Both players know the payoffs at the end of each branch. 
Suppose Lee and Cody enter into a binding non-aggression agreement. As part of that agreement, they negotiate a fine that Cody would have to pay to Lee if Cody chooses aggression after Lee chooses cooperation. For the fine to be effective, it would have to be:
A. less than 15. B. equal to 40. C. equal to 25. D. at least 15.
The signaling effect of foreign exchange intervention
A) never has any effect on exchange rates. B) can alter the market's view of exchange rates independent from the stance of monetary and fiscal policies. C) cannot cause an immediate exchange rate change when bonds denominated in different currencies are perfect substitutes. D) never leads to actual changes in monetary or fiscal policy. E) can alter the market's view of future monetary policies and cause an immediate exchange rate change.
Our rate of productivity growth began to slow very substantially around the year _____.
Fill in the blank(s) with the appropriate word(s).
As of 2010, the Gini coefficient was 33.9 in India and 40.8 in the United States. We can interpret this to mean that inequality:
A. is not a problem in either country. B. is greater in the United States than in India. C. is about the same in the two countries. D. is greater in India than the United States.