29. If national income is 5,200, disposable income is 4,400, consumption is 4,100, the trade deficit is 110, and the budget deficit is 150, what is the level of private domestic investment?A) 1,060B) 540C) 300D) 260E) 40Ans: DDifficulty: Difficult30. Assume government purchases = $1,500, the budget deficit = $120, consumption = $4,800, private domestic saving = $1,220, the trade deficit = $90, and transfer payments = $0. Which of the following is true? Difficulty: Medium31. If the U.S. budget deficit increased substantially while private domestic saving and private domestic investment remained roughly the same, then8
Full file at Difficulty: Difficult32. Assume the budget deficit decreased by $15 billion, private domestic saving decreased by $20 billion, exports increased by $10 billion, and imports increased by $15 billion. By how much did private domestic investment change?Difficulty: Medium33. The budget deficits in the early 1980s were largely financed throughA) an increase in private domestic savingB) an increase in private domestic investmentC) an increase in net exportsD) a decrease in net exportsE) none of the aboveAns: DDifficulty: Medium34. If the budget surplus increases, which of the following is likely to happen?Difficulty: Easy35. If we look at U.S. net exports over the last four decades, we realize that9
Full file at Difficulty: Medium
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- Fall '09
- National Income, gross domestic product, United States public debt, private domestic investment