Typically, the budget deficit is financed by simply printing money
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following best describes an externality?
A) something that is external to the economy B) a sales tax on a good in addition to the market price C) an effect of a transaction felt by someone other than the buyer or seller D) anything produced in other countries E) a change from what is normal
In the definition of GDP, "market value" refers to
A) valuing production in production units. B) not counting intermediate products. C) valuing production according to the market price. D) when the production took place.
Consider a downward-sloping demand curve. When the price of an inferior good increases, the income and substitution effects
A) work in the same direction to increase quantity demanded. B) work in the same direction to decrease quantity demanded. C) work in opposite directions and quantity demanded increases. D) work in opposite directions and quantity demanded decreases.
The nominal rate of interest is
A) the interest rate observed in today's market. B) the interest rate observed in the market minus the inflation premium. C) not influenced by inflation. D) a value that depends upon the stock market.