The Budget Enforcement Act was an example of a debt ceiling.
Answer the following statement true (T) or false (F)
False
The Budget Enforcement Act (BEA) of 1990 laid out a plan for Congress to close the structural deficit by limiting discretionary spending or raising taxes. The BEA set separate limits on defense spending, discretionary domestic spending, and international spending. It also required that any new spending initiative be offset with increased taxes or cutbacks in other programs-a process called 'pay as you go' or simply 'paygo.'
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Which of the following would increase the value of a firm's stock?
a. a decrease in the firm's present profit b. a decrease in the anticipated growth rate of future profits c. an increase in the perceived riskiness of future profits d. a fall in the interest rate e. an anticipated increase in the interest rate
If there is shortage of loanable funds, then
a. the supply for loanable funds shifts right and the demand shifts left. b. the supply for loanable funds shifts left and the demand shifts right. c. neither curve shifts, but the quantity of loanable funds supplied increases and the quantity demanded decreases as the interest rate rises to equilibrium. d. neither curve shifts, but the quantity of loanable funds supplied decreases and the quantity demanded increases as the interest rate falls to equilibrium.
What will a home monopolist prefer?
a. high quotas b. low quotas c. low tariffs d. It would like all of these equally; that is, they are equivalent.
Government price guarantees for certain crops are an example of:
A.) A price floor. B.) A price ceiling. C.) A monopoly. D.) The market mechanism.