When the federal government is running a budget deficit:
a. government tax revenues exceed government expenditures.
b. government expenditures exceed government tax revenues.
c. the economy must be in an economic recession.
d. the size of the national debt will decline.
Question 2
Starting from a position of macroeconomic equilibrium at below the full-employment level of real GDP, an increase in the money supply will:
a. raise interest rates, prices, and reduce real GDP.
b. raise interest rates, lower prices, and leave real GDP unchanged.
c. raise interest rates, lower prices, and leave real GDP unchanged.
d. lower interest rates, raise prices, and increase real GDP.
Hare running in open field
This chart illustrates the “drip down” model of government. In this, politics is formed by the soc
Prentice Hall's Federal Taxation 2014 Corporations, Partnerships, Estates & Trusts, 27th ...
Running Water
Work of Running Water