Methods of financing government spending are described by an expression called the government budget constraint, which states the following
A) the government budget deficit must equal the sum of the change in the monetary base and the change in government bonds held by the public.
B) the government budget deficit must equal the difference between the change in the monetary base and the change in government bonds held by the public.
C) the government budget deficit must equal the difference between the change in the monetary base and the change in government bonds held by the Fed.
D) the government budget deficit must equal the difference between the change in the monetary base and the change in government bonds held by the Treasury.
A
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Which of the following is not an example of an open access resource?
a. deer in the forest b. fish in the ocean c. oil deposits d. wild flowers e. King crabs in the Bering Sea
According to the Keynesian view, government spending will have its greatest impact during a severe recession because
a. automatic stabilizers will shift the budget toward a surplus during a severe recession. b. underemployed resources will be widespread and the crowding out of private spending will be minimal. c. budget deficits will reduce interest rates and thereby stimulate private investment. d. increases in the government's outstanding debt will lead to lower future taxes.
The process of invention is the act of
A. introducing a new product into the market. B. applying a process in a new area of the market. C. discovering a new process or product. D. adopting an innovation to a profitable use.
The percentage of total national income spent on health care in the United States has
A) declined rapidly since 1965. B) remained below the level of inflation. C) risen steadily since 1965. D) remained constant over the last few years.