Which of the following is a way to finance a budget deficit?
A) increased private saving
B) decreased domestic investment
C) decreased foreign investment
D) all of the above
D
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Suppose the rate of inflation unexpectedly decreases from 7% to 4%. Which one of the following would most likely benefit from this unexpected reduction in the rate of inflation?
A) creditors. B) a borrower whose loan has a fixed nominal interest rate. C) debtors. D) workers who are covered by a COLA agreement.
In the long run, if imports increase, then exports
A) will not change. B) will decrease. C) will also increase. D) will become zero.
Jane owns a pizza joint. In the month of February, she sold 310 medium-base pizzas and 207 large-base pizzas. She charges $9 for a medium-base pizza and $12 for a large-base pizza. The total revenue earned by Jane in February is: a. $5,210
b. $4,284. c. $5,274. d. $10,857.
Refer to the following figure. When quantity demanded is 2,000, what is marginal revenue?
A. 0 B. $10 C. $15 D. -$10 E. $12