Proper inflation accounting is necessary to measure the size of the real deficit because
a. as a lender, the government gains from inflation.
b. otherwise, the deficit is understated in inflationary times.
c. the government is a borrower that pays back dollars of less real value in inflationary times.
d. interest payments tend to fall in inflationary times.
c
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In the above figure, flow B represents ________
A) household purchases of goods and services B) household borrowing C) household income D) firms' payments for labor services
A major shortcoming of a barter economy is
A) the requirement of specialization and exchange. B) that money loses value over time from inflation. C) the requirement of a double coincidence of wants. D) that most goods and services cannot be traded.
If private investment had held up as well as consumption did, the economic contraction from 1929 to 1933 would have been less severe than it was
Indicate whether the statement is true or false
If a six-sided die is rolled 90,000 times and a number five appears 15,000 times, the relative frequency of the number five appearing is ________.
A) 15,000 B) 90,000 C) 0.167 D) 5