This topic contains a solution. Click here to go to the answer

Author Question: The government budget constraint tells us that the budget deficit is equal to A) interest on the ... (Read 62 times)

Mr3Hunna

  • Hero Member
  • *****
  • Posts: 536
The government budget constraint tells us that the budget deficit is equal to
 
  A) interest on the debt.
  B) the primary deficit.
  C) the primary deficit plus interest on the debt.
  D) imports minus exports.
  E) the primary deficit plus the trade deficit plus interest on the debt.

Question 2

When the economy is in a liquidity trap, which of the following is not correct?
 
  A) A reduction in the interest rate can be used to increase output.
  B) Fiscal policy is more important.
  C) Interest rate is zero.
  D) Large increases in spending and cuts in taxes were not enough to avoid the recession.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

cdmart10

  • Sr. Member
  • ****
  • Posts: 332
Answer to Question 1

C

Answer to Question 2

A




Mr3Hunna

  • Member
  • Posts: 536
Reply 2 on: Jun 30, 2018
Gracias!


EAN94

  • Member
  • Posts: 307
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

For a complete list of videos, visit our video library