If the inflation rate falls, what will happen to the budget deficit?
A. It will rise, because government spending will rise.
B. It will rise, because interest payments will rise.
C. It will fall, because tax receipts will increase.
D. It will fall, because interest payments will fall.
Answer: D
You might also like to view...
If velocity does not change and the quantity of money grows at the same rate as does real GDP, then in the long run
A) the real interest rate is less than the nominal interest rate. B) the inflation rate equals zero. C) the nominal interest rate equals zero. D) the inflation rate equals the growth rate of the quantity of money. E) the nominal interest rate is less than the real interest rate.
Refer to Scenario 1 . If you start the course in such a way that each exam score is worse than your previous average what should happen to your average score?
What would happen to your average if the next exam score was larger than your previous exam score? Explain.
Suppose the United States experiences a long period of inflation relative to other countries. How will this affect U.S. net exports?
What will be an ideal response?
Since World War II, the relative importance of raw materials, including oil, in total world trade
A) remained constant. B) increased. C) decreased. D) fluctuated widely with no clear trend E) increased slightly before dropping off.