Discretionary fiscal policy is independent of Congress and based on the progressivity of the tax system.

If the United States is a "net borrower" from abroad

A) net foreign investment must be positive. B) national saving is less than domestic investment. C) the United States must be exporting more than it is importing. D) net capital flows must be negative.

Which of the following is a negative externality connected to automobile transportation?

A) Driving faster than the 65 mph speed limit is not allowed, even though individuals are able to do it, and many want to. B) In an accident, a person who chooses not to wear a seatbelt becomes an object moving around the inside of the car, possibly hitting other, belted-in, passengers with lethal force. C) Gasoline is taxed on a per-gallon basis. D) Gasoline is imported, and thus increases the trade deficit. E) While stuck in traffic, you have a chance to listen to your favorite CD, which you haven't had the time to do in other places.