The government funds its spending through taxation and borrowing.
Answer the following statement true (T) or false (F)
True
The two main sources of revenue for a government are taxes and borrowed funds.
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Suppose you have $400 to invest at a nominal interest rate of 7 percent, and the investment's term to maturity is 1 year. If the inflation rate is 2 percent, then the real return on your investment is approximately
A) $8. B) $20. C) $28. D) $36.
Refer to Figure 4.7. You will receive a payoff of +5 points if you ask for points and so do ________ of your classmates
A) 3 B) 5 C) 7 D) both A and B
Is a monopolistically competitive firm allocatively efficient?
A) No, because it does not produce at minimum average total cost. B) Yes, because price equals average total cost. C) No, because price is greater than marginal cost. D) Yes, because it produces where marginal cost equals marginal revenue.
What is meant by petrodollar recycling? Explain the mechanism by which this phenomenon occurred. What were the consequences of this phenomenon for developing countries?
What will be an ideal response?