A way governments have of financing their deficits without having to pay interest is to
A) issue currency.
B) sell bonds to financial intermediaries.
C) borrow directly from financial intermediaries.
D) sell bonds in the direct finance market.
A
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The unemployment rate is the ________ who are unemployed
A) number of people in the labor force B) percentage of people in the labor force C) percentage of people in the country D) percentage of the working-age population
The benefit principle states that_____
a. people who benefit from the rule of law should pay taxes b. people who benefit from Social Security should voter for it c. people who benefit from a government activity should pay for it in proportion to their wealth d. people who benefit from a government activity should be those who pay for it
The price of a stock will decrease, ceteris paribus, when
A. The supply of the stock decreases. B. Future earnings expectations increase. C. There is a shortage of the stock at the current price. D. The interest rate increases.
Exhibit 9-7 Two-Firm Payoff Matrix
?
Suppose costs are identical for the two firms in Exhibit 9-7. If both firms assume the other will compete and charge a lower price, equilibrium will be established by:
A. Camel charging the high price and Marlboro charging the high price. B. Camel charging the low price and Marlboro charging the low price. C. Camel charging the low price and Marlboro charging the high price. D. Camel charging the high price and Marlboro charging the low price.