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 2The 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 3The 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 4The 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 5If 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 6If 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 7The 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.
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