During 1998-2001 the government budget
A) moved deeper into deficit and caused a substantial increase in borrowing from foreign investors.
B) moved into surplus but the beneficial effect was largely offset by a drop in household saving.
C) was balanced and the inflow of capital from foreign lenders was finally stopped.
D) moved into surplus and resulted in large capital outflows from the United States.
B
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Other things being equal, a higher saving rate
A) means higher standards of living today. B) is associated with a decline in the rate of growth of the population. C) means higher standards of living in the future. D) leads to higher interest rates.
Subsidizing education can lead an efficient level of production because education has external benefits
Indicate whether the statement is true or false