The deficit can be defined in simple terms as
a. Tax receipts ? government expenditures + transfers.
b. Tax receipts + government expenditures + transfers.
c. Government expenditures + transfers ? tax receipts.
d. Government expenditures ? transfers ? tax receipts.
c
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Which of the following is TRUE regarding the effect expected future income has on saving?
I. As expected future income increases, saving increases. II. Young people typically save very little. III. Middle aged people, earning higher incomes, are not very big savers. A) I and III B) II only C) III only D) II and III
The impact of crowding out
A) is larger in an open economy as compared to a closed economy. B) is larger in a closed economy as compared to an open economy. C) is larger in an open economy as compared to a closed economy when fiscal policy is contractionary. D) is larger in a closed economy as compared to an open economy when fiscal policy is contractionary.