Suppose that in 2020 the average citizen's federal tax bill is $11,888 per person, and total federal spending is $13,997 per person. In 2020, the federal government will have
a. a per person budget surplus of $2,109.
b. a per person budget deficit of $2,109.
c. horizontal equity.
d. vertical equity.
b
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In equilibrium, which of the following statements regarding the relative price of a tomato versus a book is CORRECT?
I. It is the opportunity cost of a tomato. II. It is how much the production of books must fall in order to produce another tomato. a. I b. II c. Neither is correct. d. Both are correct.
Which of the following occurs if the real interest rate falls?
A) The quantity of loanable funds demanded increases and there is a movement down along the demand for loanable funds curve. B) The quantity of loanable funds demanded decreases increases and there is a movement up along the demand for loanable funds curve. C) The quantity of loanable funds demanded increases and the demand for loanable funds curve shifts rightward. D) The demand for loanable funds decreases and the demand for loanable funds curve shifts leftward. E) The demand for loanable funds increases and the demand for loanable funds curve shifts rightward.