Refer to the Article Summary. When does the Treasury Department borrow? Why would the Treasury have to borrow more than it estimated, as was indicated by its letter to Congress to raise the debt ceiling? When would the Treasury repay what it borrowed
, and who is it repaying?
When tax revenues are not sufficient to pay the federal government's bills, the Treasury borrows the necessary funds. The Treasury would need to borrow more than it estimated if the federal budget deficit is larger than was estimated. The Treasury would repay borrowed funds if the federal budget is in surplus, and it is repaying the investors who had bought its bonds.
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Which of the following will increase economic freedom?
a. subsidies and regulations that favor business b. high tariff rates c. high marginal tax rates d. protection of persons and their property from aggression
Refer to Figure 18.4. With free trade, what is the equilibrium price of gloves in Duckland?
A. $0 B. $8 C. $9 D. $11
Populist policies are not successful even in the immediate short run at stimulating the economy and creating jobs
Indicate whether the statement is true or false
Human capital is
A. the investment people make in industries that make capital goods. B. the saving done by human beings. C. the knowledge and skills that people in the work force acquire through education and training. D. a measure of the labor productivity of workers.