Suppose potential income is $60 billion, actual income is $40 billion, and expenditures don't vary with income. If the actual budget deficit is $4 billion and the marginal tax rate is 20 percent, the cyclical deficit:
A. is between zero and $4 billion.
B. is zero.
C. is $4 billion.
D. cannot be determined from the given information.
Answer: C
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Collateralized debt is also know as
A) unsecured debt. B) secured debt. C) unrestricted debt. D) promissory debt.
The real return of money is
A) 0. B) -r. C) -R. D) -i.
For a two-part tariff imposed on two consumers, the entry fee is based on the:
A) consumer surplus of the customer with lower willingness-to-pay. B) consumer surplus of the customer with higher willingness-to-pay. C) simple average of the consumer surplus for the two buyers. D) none of the above
In the economy of Talikastan in 2015, consumption was $3000, exports were $1200, GDP was $8000, government purchases were $1200, and imports were $600 . What was Talikastan's investment in 2015?
a. $3200 b. $5600 c. $2000 d. $4400