In an open economy, the government deficit is 400 and investment exceeds saving by 300, so in equilibrium the trade deficit (IM ? X) must be

Small time deposits of $100,000 or less are classified as

A) part of M1. B) FDIC insured. C) part of M2. D) highly liquid.

The federal government budget has generally been in a deficit for the past several decades because

A) budget deficits promote full employment. B) every year during those decades was a recession year in which expansionary fiscal policy was called for. C) military expenditures were increased steadily throughout those decades. D) political pressure on Congress to increase taxes and to balance the budget were less effective than political pressure to increase expenditures.