According to the liquidity premium theory of the term structure, a downward sloping yield curve indicates that short-term interest rates are expected to

Refer to the table above. The private sector balance is a

A) $700 billion surplus. B) $400 billion deficit. C) $700 billion deficit. D) $2,900 billion deficit. E) $2,900 billion surplus.

The consumer price index or CPI includes

A) The cost of a standard market basket bought by consumers in the current year. B) The cost of a standard market basket bought by consumers in the current year relative to a base period. C) The cost of a standard market basket bought by producers in the current year. D) The cost of a standard market basket bought by producers in the current year relative to a base period.