Governments have to rely on taxes for financing because
A. they cannot borrow unlimited amounts.
B. they usually spend all of the gold reserves.
C. they are not allowed to sell bonds.
D. it is easier to collect taxes than to print money.
Answer: A
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In a market, at the equilibrium price
A) neither buyers nor sellers can do business at a better price. B) buyers are willing to pay a higher price, but sellers do not ask for a higher price. C) buyers are paying the minimum price they are willing to pay for any amount of output and sellers are charging the maximum price they are willing to charge for any amount of production. D) None of the above is true.
If a bank does not loan out all of its excess reserves, the amount of money the banking system can create is greater than if all of the excess reserves were loaned out
Indicate whether the statement is true or false
Isocost lines associated with ______ total cost lie ______ the origin.
A. lower; farther from B. higher; farther from C. higher; closer to D. sunk; closer to
E. Carey Brown, an MIT economist, studied government deficits during the Great Depression and found that even though actual deficits were large, the structural deficit changed very little. Which of the following statements is consistent with this finding?
A. Fiscal policy did not work during the Depression. B. Fiscal policy made the Depression worse. C. Fiscal policy was not tried during the Depression. D. Fiscal policy improved the economy during the Depression.