Question

In: Economics

3-All of the following are possible explanations for the increase in U.S. government budget deficits as...

3-All of the following are possible explanations for the increase in U.S. government budget deficits as a percentage of GDP since 2000 EXCEPT

A.increases in payments for entitlements.

B.increases in tax revenues.

C.decreases in tax rates.

D.increases in government spending.

11-Which of the following is an example of a stock variable?

A.The government debt.

B.Income

C.Investment.

D.Saving.

12-Which of the following is a stock variable?

A.money supply

B.wealth

C.public debt

D.all of the above

15-Which of the following statements is TRUE about the historical relationship between the trade deficits and government budget deficits?

A.There is a positive relationship between trade deficits and budget deficits.

B.There is no relationship between trade deficits and budget deficits.

C.There is a negative relationship between trade deficits and budget deficits.

D.A relationship exists only when there is a balanced budget.

18-The public debt is

A.a situation in which the government's spending is exactly equal to the total taxes and other revenues it collects during a given time period.

B.all federal government debt irrespective of who owns it.

C.an excess of government spending over government revenues during a given time period.

D.the total value of all outstanding federal government securities.

Solutions

Expert Solution

Que. 3 All of the following are possible explanations for the increase in U.S. government budget deficits as a percentage of GDP since 2000 EXCEPT

Ans: B. Increase in Tax revenues

Que 11. Which of the following is an example of a stock variable?

Ans. A. The government debt

Que 12. Which of the following is a stock variable?

Ans. A. Money Supply

Money supply is a stock variable, because it measures the amount of money in the economy at a particular time. A stock variable has no length of time.

Que. 15 Which of the following statements is TRUE about the historical relationship between the trade deficits and government budget deficits?

Ans: A. There is a positive relationship between trade deficits and budget deficits.

Govt. budget deficit leads to higher interest rates that will lead to a trade deficit.

Que. 18 18-The public debt is

Ans. D. The total value of all outstanding federal government securities.

Rahul Sunny answered 1 year ago

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