Despite the elimination of the federal budget deficit in the late 1990s, the trade deficit increased due to
a. increased household saving.
b. decreased household saving.
c. a depreciation of the dollar.
d. an increase in inflation rates.
b
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Explain why the Fed must choose between targeting the money supply or targeting interest rates when money demand increases
In mid-2009, publicly held debt was approaching ______ and total debt was approaching ______
a. $1 trillion; $12 trillion. b. $3 trillion; $6 trillion. c. $12 trillion; $7 trillion. d. $7 trillion; $12 trillion. e. $12 trillion; $12 trillion.
One reason that deadweight losses are so difficult to avoid is that
a. taxes affect the decisions that people make. b. income taxes are not paid by everyone. c. consumption taxes must be universally applied to all commodities. d. the administrative burden is hard to calculate.
In which one of these years was labor union membership the highest?
A. 1940 B. 1960 C. 1980 D. 1990