To finance a federal budget deficit, the U.S. Treasury borrows by selling:
a. Treasury bills.
b. Treasury notes.
c. Treasury bonds.
d. All of the answers are correct.
d
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Why might well-educated economists disagree on appropriate public policy in some situations?
What will be an ideal response?
If the cost of capital increased to 25%, would the firm invest in the printer?
a. Yes because the NPV>0 b. Yes because the NPV=0 c. Need information on the marginal benefits and costs d. No because the NPV<0
A perfectly competitive firm
a. can increase total revenue by raising its price b. can sell more goods by lowering its price c. can sell more goods by raising its price d. cannot increase sales or total revenue by changing its price e. typically tries to offer lower prices than rival firms
Indirect incentive
What will be an ideal response?