Suppose the government has a $375 billion budget deficit. If the government creates $225 billion of new money to finance this deficit and finances the rest by borrowing, the amount borrowed from the public will be
A) $150 billion. B) $225 billion. C) $375 billion. D) $600 billion.
A
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If a freeze destroys oranges before they are harvested, the equilibrium price of an orange ________ and the equilibrium quantity ________
A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases E) does not change; decreases
If a consumer allocates income between goods A and B, total utility is maximized when:
a. the marginal utility of A = the marginal utility of B. b. the marginal utility of A = the marginal utility of B = 0. c. the price of A = price of B. d. marginal utility of A / price of A = marginal utility of B / price of B = 0. e. marginal utility of A / price of A = marginal utility of B / price of B.
The tendency for people who have good health insurance to take more risks with their health is called adverse selection.
Answer the following statement true (T) or false (F)
Alternative proposals to change the current system of exchange rates include
a. a new explicit system of fixed exchange rates. b. adjustable target zones for exchange rates. c. a dirty float rate system. d. Both a and b e. Both b and c