Graphically, the effect of a government subsidy on a good is shown as
A) a leftward shift of the market demand curve.
B) a rightward shift of the market demand curve.
C) a downward movement along the market demand curve.
D) no change to the market demand curve.
Question 2
Net public debt is the
A) difference between tax revenues and government expenditures each year.
B) sum of accumulated government deficits and surpluses held by individuals and businesses and foreign institutions.
C) sum of accumulated government deficits and surpluses held by U.S. government agencies.
D) sum of accumulated government deficits and surpluses held by large money center banks.
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