A higher deficit in the current year will lead to increased debt in the future only if
A) the deficit is greater than the previous year's deficit.
B) the deficit-to-GDP ratio is greater than the debt-to-GDP ratio.
C) it causes a drop in private saving.
D) it causes an increase in private saving.
E) none of the above
E
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If the U.S. capital and financial account balance has a $30 million surplus and there was no change in official reserves during that year, we know that
A) the United States has a $30 million current account deficit. B) U.S. official reserves have increased by $30 million. C) the United States is a net lender. D) U.S. net foreign lending must equal $30 million. E) the United States has a $30 million current account surplus.
Suppose the market for pizza makers is initially in equilibrium, but then the equilibrium wage rate and the equilibrium quantity of labor both increased. What happened in the market for pizza makers?
A) The demand for pizza makers increased. B) The demand for pizza makers decreased. C) The supply for pizza makers increased. D) The supply for pizza makers decreased.