The difference between the national debt and a federal budget deficit is
What will be an ideal response?
the national debt represents the cumulative effect of all previous budget deficits and surpluses, while the federal budget deficit reflects only the additions to the debt during the current year.
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Refer to Table 18-6. Sasha is a single taxpayer with an income of $60,000. What is his marginal tax rate and what is his average tax rate?
A) marginal tax rate = 17%; average tax rate = 21% B) marginal tax rate = 23%; average tax rate = 38% C) marginal tax rate = 38%; average tax rate = 23% D) marginal tax rate = 38%; average tax rate = 24%
The economy is in a recessionary gap and a Keynesian economist advocates expansionary fiscal policy. What is a likely reason this economist advocates expansionary fiscal policy?
A) The economist believes the economy is stuck in a recessionary gap and crowding out will be complete. B) The economist believes the economy is stuck in a recessionary gap and there will be no crowding out. C) The economist believes that wages are too flexible and that crowding out will be incomplete. D) The economist believes the AD curve is downward-sloping, the SRAS curve is upward-sloping, and prices are flexible. E) none of the above
Jack Sprat could eat no fat, his wife could eat no lean. And so betwixt them both, they licked the platter clean. Which of the following is true about Jack and his wife?
A. Marginal utility of fat is falling for Jack; marginal utility of lean is falling for his wife. B. Marginal utility of fat is negative for Jack; marginal utility of lean is negative for his wife. C. Marginal utility of lean is negative for Jack; marginal utility of fat is negative for his wife. D. Marginal utility of lean is rising for Jack; marginal utility of fat is rising for his wife.
The demand curve is downward sloping because
A. a reduction in the price of a good causes individuals to increase their purchase of that good. B. the price must rise to induce firms to increase quantity supplied. C. an increase in the price will cause a leftward shift in the demand curve. D. all of these.