The standard way to measure the effects of debt in an economy is to look at the stock of debt relative to
A) the total budget. B) GDP.
C) total government spending. D) federal tax revenue.
Question 2
If home prices are falling, consumers purchasing a home will find their purchasing power of money has increased. This benefit to consumers is called the
A) home equity effect. B) inflation effect. C) wealth effect. D) multiplier effect.