When the U.S. government runs a deficit, it usually does the following:
a. It buys government bonds from the public
b. It asks the Treasury Department to print money to pay for the deficit
c. It sells new government bonds to the public
d. It borrows money directly from the Federal Reserve
e. It asks the Federal Reserve to print money to pay for the deficit
C
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GDP is: a. the value of all final goods and services produced domestically within a given period of time
b. the value of all final good and services produced anywhere in the world by a nation's firms within a given period of time. c. the value of all final goods and services produced by a government within a given period of time. d. the sum of all currency and coins in circulation.
Chronic trade deficits lead to a growing national debt
a. True b. False Indicate whether the statement is true or false
Which of the following explains the shape of a total fixed cost curve?
a. It slopes downward because fixed costs decrease as output increases. b. It slopes upward because fixed costs increase as output rises. c. It is horizontal because fixed costs do not change with changes in output. d. It is U-shaped because fixed costs are high at very low and very high output levels.
A company that makes baseball caps is underutilizing its resources. What does this mean?
a) The company is running more efficiently than its competitors b) The company is paying its employees less than it should be c) The company is making caps when it could be making t-shirts instead d) The company is producing fewer caps than it could be