Public saving is negative when:
A. the government's budget is balanced.
B. there is a government budget deficit.
C. after-tax income of households and businesses is greater than consumption expenditures.
D. there is a government budget surplus.
Answer: B
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In the 19th century, the federal government:
a. allocated funds to help build steamboats. b. passed laws requiring steamboat boiler inspections. c. required steamboat captains to undergo training in order to receive an operating license. d. regulated the fees that steamboats could charge for carrying freight. e. All of the above.
The J-curve effect means that import prices are higher, thus revenues paid out increase while export prices are lower and incoming revenues decrease. Therefore, after a currency depreciation:
a. the trade balance will improve, then decline, then improve, and then decline, appearing to be a series of J shapes. b. the trade balance will increase, then decrease, then jump higher, which economists call the J-curve effect. c. the nation will cut back on imports immediately causing the trade balance to improve, which gives the curve an inverted J shape. d. the trade balance decreases and then increases over time giving the curve a J shape.
The marginal revenue product curve shifts when
A) wages fall. B) there is a change in the product price workers are producing. C) wages rise. D) the wages paid exceed the price.
At the equilibrium level of GDP:
A. MV = nominal GDP. B. MV = real GDP. C. M = nominal GDP. D. V = 1/MPS.