Issuing money to finance budget deficits:
A. increases the resources consumed by both the government and the private sector.
B. does not increase the resources consumed by either the government or the private sector.
C. increases the resources consumed by the government and thereby leaves fewer resources for the private sector.
D. increases the resources consumed by the government but does not change the resources consumed by the private sector.
Answer: C
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In part, microeconomics is concerned with
A) how a business firm decides upon the amount it produces and the price it sets. B) changes in the economy's total output of goods and services over long periods of time. C) factors that explain changes in the unemployment rate over time. D) the Federal Reserve's policy decisions.
A private good is:
a. excludable and nonrival. b. nonexcludable and rival. c. nonexcludable and nonrival. d. excludable and rival.
Which of the following is not possible when a firm is maximizing its profits?
a. MC = MR b. AVC is at its minimum point c. AFC < AVC d. MC = MR and MC is decreasing e. MC = MR and MC is increasing
Modern antitrust policy began in response to
a. abuses of market power in the oil industry. b. the inability of railroads to compete effectively with the new trucking industry. c. the charge that the rights of big business were not adequately protected. d. attempts by business leaders to pack Congress with corrupt legislators.