The gross public debt is the difference between current government expenditures and tax revenues. amount of U.S. paper currency and coins in circulation. ratio of past deficits to past surpluses: total of all accumulated deficits and surpluses. QUESTION 39 The interest rate is the opportunity cost of investing in Treasury securities. of using credit cards. of investing in stocks: of holding money. QUESTION 40 The largest component of M1 is travelers checks transaction deposits. currency and coins. savings accounts. QUESTION 41 The marginal propensity to save is real consumption/real disposable income. real savingireal disposable income. change in real consumption/change in real disposable income. change in real saving/change in real disposable income. QUESTION 42 The multiplier is the proportion of total disposable income that is consumed. the percentage of a given change in income that goes towards consumption. the part of consumption that is independent of the level of disposable income. the number which is multiplied by an autonomous change which gives the change in the equibrlum level of real GDP. The World Bank is the official name of the intemational Monetary Fund. the central bank of the United Nations. composed of five separate institutions. composed of large private banis among developed nations. QUESTION 34 The Ricardian equivalence theorem states that an increase in the government budget deficit created by a current tax cut has no effect on aggregate demand. increases in govermment spending have a larger impact on real Gross Domestio Product (GOP) than decreases in taxes . an increase in government spenting has no etlect on aggregate supply. an increase in the government budget deficit has no effect on real Gross Domestic Product (GDP) because it only affects the price index. QUESTION 35 The break-even point fefers to the point at which planned real consumption equals real disposable incomo a point at which planned real consumption is greater than real disposable income. izero amount of autonomous consumption. the maximum arnount of dissaving a person can experience. QUESTION 36 The consumption function relates a household's consumption to its wealth real disposable incomes earned by households with the level of unexpected consumption spending. planned household consumption to real disposable income. planned household consumption and real interest rates. QUESTION 37 The cost of holding money is best described as the goods and services that money can buy the yleld that could have been eamed had the asset been held in another form. the cost of printing money. the yield which is paid to money holders by the U.S, government