A contractionary fiscal policy is likely to
A) reduce a government budget deficit and reduce borrowing by the Treasury.
B) increase a government budget deficit and increase borrowing by the Treasury.
C) reduce a government budget deficit and increase borrowing by the Treasury.
D) increase a government budget deficit and reduce borrowing by the Treasury.
Ans: A) reduce a government budget deficit and reduce borrowing by the Treasury.
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The World Bank is an international organization that
A) promotes the growth of trade by setting rules for how tariffs and quotas are set by countries. B) makes loans to countries to finance projects such as dams and roads. C) makes loans to countries with balance of payment difficulties. D) helps developing countries that have been having difficulties in repaying their loans to come to terms with lenders in the West.
Durable and nondurable goods and services lumped together in the expenditure approach to measuring GDP are called:
a. Personal consumption. b. Gross private domestic investment. c. Government spending. d. Inventory. e. Employee compensation.