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6.A surplus is defined as Select one: a. the excess of total expenditures over t

ID: 1239352 • Letter: 6

Question

6.A surplus is defined as


Select one:


a. the excess of total expenditures over total revenues.

b. the excess of total revenues over total expenditures.

c. government spending plus transfer payments.

d. the sum of all past borrowing by the government.
7.Financing government expenditure through deficits rather than through taxes will lead to higher spending if


Select one:


a. people are more aware of taxes than they are of deficits.

b. people are more aware of deficits than they are of taxes.

c. it results in crowding out.

d. it results in crowding in.
8.When the deficit increases under the concept of Ricardian Equivalence, what happens to savings in the private sector?


Select one:


a. nothing

b. savings decrease

c. savings increase

d. savers hedge on purchases
9.In the United States, the Federal Reserve pursues an inflation targeting policy of keeping inflation below 2 percent.


Select one:


True

False
10.Capital gains are the profit earned from the sale of


Select one:


a. stocks.

b. bonds.

c. real estate.

d. All of these.

Explanation / Answer

b. the excess of total revenues over total expenditures.