In the table above, what is the government's sector balance?
A) a deficit of 700 billion
B) a surplus of 600 billion
C) a deficit of 100 billion
D) a surplus of 100 billion
Question 2
When the velocity of circulation equals 4 in 2010, this fact means that
A) consumers held four dollars in wealth for each dollar they spent in 2010.
B) on average, each dollar of money in the economy purchased four dollars of goods and services in GDP in 2010.
C) for each additional dollar of money injected into the economy, the price level rose 4 percent in 2010.
D) real output of goods and services in GDP rose by four dollars for each additional dollar of money consumers saved.
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