The government budget constraint implies that
A) government borrowings = government spending+ transfers - taxes and user charges.
B) government borrowings = taxes and user charges + government spending - transfers
C) government spending = transfers - taxes and user charges - government borrowing.
D) government spending = government borrowing - transfers - taxes and user charges
A
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Because banking is very __________-intensive, a bank generally becomes successful if it can __________ the ratio of salary and wages to total assets
A) capital; raise B) capital; lower C) labor; raise D) labor; lower
If velocity and output are fixed at 5 and 400, respectively, and the price level is 2, then the money supply is
A) 4,000. B) 200. C) 160. D) 40.
The most commonly accepted objective for a firm is
A) to stay in business at all cost. B) to maximize total revenue. C) to maximize economic profit. D) to minimize the variable cost outlay.
Which of the following will cause an increase in aggregate demand?
A. Restrictive fiscal policy. B. An increase in the reserve requirement. C. Expansionary monetary policy. D. The sale of bonds by the Fed.