When the federal government incurs a budget deficit, it will

A) mint more coins and spend them.
B) create money out of thin air.
C) impose a special tax on all income earners.
D) borrow money from the Federal Reserve System by issuing securities.
E) borrow money from the public by issuing government securities.


E

Economics

You might also like to view...

Which of the following statements best describes the economic short run?

A) It is a period during which at least one of the firm's inputs is fixed. B) It is a period during which fixed inputs become variable inputs because of depreciation. C) It is a period during which firms are free to vary all of their inputs. D) It is a period of one year or less.

Economics

All these are characteristics of a monopoly except,

a. There is one seller of the product b. Has few substitutes c. Controls a large share of the market d. Controls a small share of the market

Economics

Suppose that MPL = 200 and MPK = 240. If R = 30, then at which of the following wages would the firm want to hire fewer workers and more capital?

A. W = 23 B. W = 24 C. W = 25 D. W = 26

Economics

Assume a society can produce either olives or grapes. If the marginal rate of transformation of bushels of olives into bushels of grapes is 0.2, then the opportunity cost of grapes is

A. the 5 bushels of grapes that must be forgone. B. the 0.2 bushels of olives that must be forgone. C. the additional 0.2 gallons of olives that can be produced. D. the 5 bushels of olives that must be forgone.

Economics