Economists Who Are Concerned with the Effect of Fiscal Policy

question 46

Multiple Choice

Economists who are concerned with the effect of fiscal policy on the ability of households and firms to borrow to finance consumption will focus on ________,and economists who want to know whether the government's fiscal policy is sustainable will focus on ________.

• A) yearly budget deficits; the federal debt
• B) the federal debt; yearly budget deficits
• C) yearly budget deficits; both the federal debt and yearly budget deficits
• D) the federal debt; both the federal debt and yearly budget deficits

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Definitions:

G3P

Glyceraldehyde 3-phosphate, a key intermediary molecule in both the glycolysis and Calvin cycles, involved in the metabolic process of producing energy.

Fatty Acids

Long chains of hydrocarbon ending with a carboxyl group, essential in diet and biological functions.

Calvin Cycle

A series of biochemical reactions taking place in the chloroplasts of plants during photosynthesis where carbon dioxide is converted into glucose.

RuBP Carboxylase

An enzyme that starts the Calvin cycle reactions by catalyzing attachment of the carbon atom from CO2 to RuBP.