Monetizing the budget deficit
A) creates a full-employment deficit that exceeds the actual deficit.
B) occurs when the Treasury sells bonds to businesses.
C) helps stabilize the economy.
D) leads to increases in the money supply.
D
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If the balance on the current account is $842 billion and the balance on the financial account is -$603 billion, what is the balance on the capital account, assuming no statistical discrepancy?
A) $1,445 billion B) $239 billion C) $0 D) -$239 billion
If there are increasing returns to scale, then it makes sense to consolidate operations into one production facility
A) if production above domestic demand can be exported. B) only if the consolidation creates an absolute advantage versus other trading partners. C) if the government subsidizes production. D) Never, because then you lose the possibility of comparative advantage gains between the production facilities.
Individual firms in a perfectly competitive market can
a. purchase all they want at the market price b. sell all they produce at the market price c. earn more profit if they charge a price above the market price d. earn more profit if they charge a price below the market price e. earn no profit in the short run
Which of the following involves efforts by government or businesses that give special rights to minorities in hiring, promotion, or access to education to offset past discrimination?
a. Affirmative action b. Diversity training c. Reverse discrimination d. Multiculturalism