To finance a federal budget deficit, the U.S. Treasury borrows by selling:

To finance a federal budget deficit, the U.S. Treasury borrows by selling:
 a. Treasury bills.
  b. Treasury notes.
  c. Treasury bonds.
  d. All of these.

QUESTION 2

The term balance of trade refers to the:
 a. importing and exporting of goods.
  b. importing and exporting of goods and services.
  c. current account trade balance.
  d. capital outflows minus inflows.

QUESTION 3

The marginal propensity to consume (MPC) is the slope of the:
 a. GDP curve.
  b. disposable income curve.
  c. consumption function.
  d. autonomous consumption curve.

QUESTION 4

The total accumulated debt of the federal government due to deficit spending is called the:
 a. federal deficit.
  b. Congressional debt.
  c. deficit debt ceiling.
  d. national debt.

QUESTION 5

If U.S. buyers purchased 500 billion of foreign goods and foreign buyers purchased 400 billion of U.S. goods, the U.S. balance of trade would be:
 a. 100 billion. b. 100 billion.
  c. 400 billion. d. none of these.

QUESTION 6

If your disposable personal income increases from 33,000 to 41,000 and your consumption increases from 8,000 to 12,000 . your marginal propensity to consume (MPC) is:
 a. 0.2.
  b. 0.4.
  c. 0.5.
  d. 0.8.
  e. 1.0.

QUESTION 7

The term balance of trade refers to a nation's:
 a. goods exports minus imports.
  b. current account balance.
  c. capital account balance.
  d. net balance of all international transactions.