If a country's goods exports are less than its goods imports, then it experiences a:

If a country's goods exports are less than its goods imports, then it experiences a:
 a. balance of payments surplus. b. balance of payments deficit.
  c. balance of trade surplus. d. balance of trade deficit.

QUESTION 2

The change in consumption divided by a change in disposable income is called the:
 a. consumption function.
  b. marginal propensity to consume.
  c. marginal propensity to spend.
  d. spending function.
  e. changing propensity to consume.

QUESTION 3

Which of the following statements is true?
 a. The national debt is the current year's amount by which the government is spending more than it collects as taxes.
  b. Deficits are financed by the government issuing for sale more government securities.
  c. The debt ceiling refers to the amount of debt at which the government is officially declared as being bankrupt.
  d. Internal national debt is the portion of the national debt owed to foreigners.

QUESTION 4

A favorable balance of trade occurs when:
 a. goods exports are greater than goods imports.
  b. goods imports are greater than goods exports.
  c. international trade is an increasing share of total output.
  d. the balance on capital account equals the balance on current account.
  e. unilateral transfers are positive.

QUESTION 5

The marginal propensity to consume is:
 a. the change in disposable income divided by the change in consumption.
  b. consumption spending divided by disposable income.
  c. disposable income divided by consumption spending.
  d. the change in consumption divided by the change in disposable income.
  e. the change in consumption divided by disposable income.

QUESTION 6

The balance of trade is measured by which of the following expressions?
 a. The value of exported goods and services minus the value of imported goods and services
  b. The value of income receipts on investments minus income payments on investments
  c. The value of goods exports minus the value of goods imports
  d. The value of government spending minus the value of all taxes received
  e. The balance on capital account plus the balance on current account

QUESTION 7

Which of the following is false?
 a. The national debt's size decreased steadily after World War II.
  b. The national debt increases in size whenever the federal government has a surplus budget.
  c. The size of the national debt currently is about the same size as it was during World War II.
  d. All of the above are true.
  e. All of the above are false.