When the budget deficit is financed entirely through money creation, the real budget deficit is equal to which of the following?
A) ?H
B) ?H - ?P
C) (?H)/P
D) (?H)/H
E) P[(?H)/H]
C
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How does the adverse selection problem faced by insurance companies differ from the moral hazard problem they face? How might an insurance company deal with each problem?
What will be an ideal response?
An income tax will have zero welfare cost when an individuals labor supply curve is perfectly inelastic _____
a. always b. never c. only if the income effect is zero d. only if the substitution effect is zero
The consumer's income is $800.According to the above figure, what is the consumer's marginal rate of substitution in equilibrium?
A. 2.5 B. 1.5 C. 2 D. 0.8 E. unable to tell from information given
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A. spending that transfers resources from the government to individuals. B. when individuals transfer stock ownership in lieu of payment with cash or other liquid assets. C. when individuals transfer cash for payments of a good or service. D. payments that individuals make to the government.