Deficits may be desirable in the short run if they:
A) help to stabilize the economy when the economy falls below potential output.
B) increase savings necessary for future investment and growth.
C) increase savings necessary for future consumption and demand.
D) help to stabilize the economy when the economy is above potential output.
Correct Answer:
Verified
Q3: Countries with larger debts in terms of
Q4: If Japan's debt level is much higher
Q5: In the short-run framework, budget deficits should:
A)never
Q6: Over the past five years, most countries'
Q7: A budget deficit is defined as:
A)a shortfall
Q9: A budget surplus is defined as:
A)a shortfall
Q10: The real deficit is the nominal deficit
Q11: The portion of the budget deficit or
Q12: Economists believe that an increase in equilibrium
Q13: In the long-run framework, budget surpluses:
A)should be
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