b

The idea that present generations benefit from borrowing what future generations must pay is called a. the budget deficit. O b. intertemporal substitution. Oc the intertemporal budget constraint. O d. generational accounting. e discretionary spending. Which of the following is NOT an issue of large deficits and a large debt-to-GDP ratio for the economy? a. intergenerational equity b. the importance of economic growth OC. the possibility of high inflation or default Od the impacts on the overall money supply O e. the extent to which deficits crowd out private investment There was discussion of expanding the North American Free Trade Agreement (NAFTA) to include other Latin American countries, called the Free Trade Agreement of the Americas (FAA). If you are a union member, you might object to the signing of a free trade agreement Od only it members of your tabor pool will be adversely affected because free trade means gains for the economy as a whole. bi only if members of your labor pool will be adversely affected O only members of your labor pool will be adversely affected because free trade means losses for the economy as a whole dit all labor will be adversely affected because free trade means fosses for the economy as a whole Oe None of these answers is correct, If a country is running a trade deficit, which of the following is true? O a. Investment is greater than domestic savings. O b. Domestic savings is greater than investment. O c. Investment and domestic savings are equal. O d. Exports are greater than imports. O e. More information is need it. The trade balance is $1,000 and investment is $5,000. Domestic saving is equal to O a $6,000 O b. $4,000 O c. -$1,000 O d.-$2,000 e. $5,000