What is the difference between government deficit and government debt?
The difference between the deficit and the debt lies in the timeframe considered. A government deficit (as well as a government surplus) is the difference between tax revenues and government spending over a given period of time, typically a year. The government debt, on the other hand, is the government's accumulated indebtedness over time—the sum of all past deficits and surpluses.
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What gives money value under a fiat system?
A) Fiat money is also a commodity. B) The supply of fiat money is controlled by the government. C) Fiat money is backed by gold. D) Fiat money is the same as Treasury bonds.
"Banks hold about 50 percent of their assets as reserves." Is the previous statement correct or not?
What will be an ideal response?
Acme is a perfectly competitive firm. It has the total cost schedule given in the above table. Acme's product sells for $8.00 per unit. What amount of output is the most profitable and what is Acme's economic profit or economic loss?
What will be an ideal response?
Of the following groups, who gains from rent controls?
A) landlords B) construction workers and their union leaders C) poor people who have a hard time earning enough income to pay high rents D) high-income people who live in rent-controlled apartments