If central banks could not create money, developing countries:
A. would find it very difficult to finance their current expenditures.
B. could not finance any of their expenditures.
C. could still finance their expenditures by issuing bonds.
D. could still finance their expenditures by simply raising taxes.
Answer: A
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Production possibilities curve analysis includes the idea of:
a. opportunity cost. b. scarcity. c. maximum production choices. d. all of these.
Chronic trade deficits lead to a growing national debt
a. True b. False Indicate whether the statement is true or false
In a perfectly competitive industry, an individual firm faces
A) a perfectly inelastic labor supply curve. B) a perfectly vertical labor supply curve. C) a perfectly elastic labor supply curve. D) none of the above.
Frederic Bastiat's satire clearly illustrates that:
A. French candle makers would benefit from government restrictions on trade B. French consumers would benefit from a tariff on U.S. candles C. The arguments in favor of trade protectionism can sometimes be ridiculous D. The arguments in favor of protectionism are sometimes well-founded