Monetizing the debt occurs when ________
A) government securities are issued
B) government securities are sold by the central bank
C) government securities are bought by the central bank
D) tax revenues fall short of government expenditures
C
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Which of the following is not generally considered a failing of market economies?
a. Market economies can have severe swings from boom to bust. b. Market economies tend to underprovide public goods. c. Market economies tend to promote equity at the expense of efficiency. d. Market economies can misallocate resources when property rights are ill defined.
Suppose that a firm in monopolistically competitive market is producing 30 units of output. At this level of production, the firm charges $50 per unit. Its marginal cost is $24 and marginal revenue is $24, and average cost is $20 per unit. Given this information, in the long run you would expect
A. firms to exit the market. B. price to increase. C. firms to enter the market. D. firms to maintain their current output and price.
All of the following are responsible for the removal of the formal trade barriers EXCEPT
A) the General Agreement on Tariffs and Trade (GATT). B) the World Trade Organization (WTO). C) regional trade agreements such as NAFTA. D) the World Bank and the IMF.
The case for advertising includes the idea that
A. it creates wants that otherwise would not have existed. B. firms spend large sums of money to create meaningless differences among products. C. it can promote competition. D. it adds to society's scarce resources.