Explain the differences between the public debt and the government budget deficit
What will be an ideal response?
The public debt is a stock measured at a point in time, while the government budget deficit is a flow measure. The public debt changes as a result of government budget deficits or surpluses. The public debt is the total value of all outstanding federal government securities.
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If you want to have $50,000 in 5 years, how much would you need to put in your savings account now if the savings account pays 3 percent interest?
What will be an ideal response?
According to the quantity equation, if M increases by 3 per cent and V increases by 2 per cent, then:
A. real income increases by approximately 5 per cent. B. the price level increases by approximately 5 per cent. C. the nominal interest rate increases by approximately 5 per cent. D. nominal income increases by approximately 5 per cent.