Explain the differences between a federal budget deficit, a federal budget surplus, and a balanced federal budget
What will be an ideal response?
A federal budget deficit occurs when the federal government spends more than it receives in tax revenues in a given year. A federal budget surplus occurs when the federal government receives more in tax revenues than it spends in a given year. A balanced federal budget occurs when the federal government spends the same amount that it receives in tax revenues in a given year.
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Kiwis and strawberries are substitutes for consumers. An increase in the price of a kiwi coupled with an increase in the number of strawberry growers ________ the equilibrium price of a pound of strawberries and ________ the equilibrium quantity of
strawberries. A) raises; increases B) lowers; probably changes, but more information is needed to determine if it increases or decreases C) lowers; increases D) probably changes, but more information is needed to determine if it rises or falls; increases E) raises; probably changes, but more information is needed to determine if it increases or decreases
Rent controls and controls on other prices often aggravate the very problem they are intended to solve
a. True b. False Indicate whether the statement is true or false
The money multiplier equals
a. 1/R, where R represents the quantity of reserves in the economy. b. 1/R, where R represents the reserve ratio for all banks in the economy. c. 1/(1+R), where R represents the quantity of reserves in the economy. d. 1/(1+R), where R represents the reserve ratio for all banks in the economy.
An example of automatic stabilizers is
A. taxes falling in an expansion. B. taxes rising in a recession. C. government spending rising in a recession. D. all of the above