In contrast to the structural deficit, the cyclical deficit reflects
A. Changes in discretionary fiscal policy.
B. Fluctuations in economic activity.
C. Fiscal policy decisions.
D. Changes in the "full-employment" deficit.
Answer: B
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A new bank has reserves of $600,000, checkable deposits of $500,000, and government securities of $100,000. If the desired reserve ratio is 10 percent, the amount of loans this bank can make is
A) $60,000. B) $550,000. C) $50,000. D) $600,000. E) $540,000.
The above figure represents the market for cable television in Oakland, Florida. Time Warner Communications (TWC) is the sole provider of cable television to the residents of this Central Florida community
If TWC operated under a marginal cost pricing rule, how many households in Oakland are served? A) 20,000 B) 30,000 C) 40,000 D) 50,000 E) 10,000