According to the government budget constraint, any excess of public expenditures and transfers over taxes and user fees must be funded by
A. U.S. Treasury money creation.
B. private borrowing.
C. Federal Reserve money creation.
D. government borrowing.
Answer: D
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Creating economic growth:
A. is an easy thing for policy-makers to achieve with correct taxation policy. B. is well understood by macroeconomists. C. involves savings, capital, labor, and technology. D. has no central tenets upon which the theory is based.
If velocity is 6, real output is 10,000, and M is 20,000 what would the price level be? If M increases to 25,000 but V and Y do not change, what happens to the price level? Are the change in the money supply and the change in the price level proportional?
The US had a nominal GDP of 10.3 trillion dollars in 2000. If the US great at an average rate of 3.0 % per year then its compounded GDP at the end of 2015 would have been:
A. 16.3 Tr. B. 14.7 Tr. C. 16.0 Tr. D. 15.6 Tr.
Higher employment taxes lead to lower levels of employment
Indicate whether the statement is true or false