The government can borrow money from both the bond market and the loanable funds market
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Which of the following is a valid reason to consider government regulation?
A. Seeking some social objective that markets do not achieve. B. Fear that capitalism will prove too productive. C. Desire on the part of government to be useful. D. Requests for protection for an industry. E. All of the responses are correct.
When does it make sense to run a trade deficit?
a. It never makes sense because a trade deficit is the same as borrowing, which hurts the economy. b. It makes sense when the financial inflow is used to pay for projects with short-run pay-offs, such as summer camps. c. It makes sense when the financial inflow is used to pay for projects with long-run pay-offs, such as the U.S. highway system. d. It does not make sense unless the majority of people in the economy want to go into debt.
If labor productivity increases
A) labor costs rise by equal increments. B) the demand for labor increases. C) some workers will be laid off. D) jobs will relocate.
Suppose Chris is offered the following gamble: with probability 0.1 he will win $90, with probability 0.4 he will win $50, and with probability 0.5 he will lose $60. The expected value of this gamble is found by solving:
A. 0.1 × $90 + 0.4 × $50 B. 0.1 × $90 + 0.4 × $50 - 0.5 × $60 C. ($90 + $50 - $60)/3 D. 0.1 × ($90 - $60) + 0.4 × ($50 - $60)