What is a benefit of giving the government freedom to spend more than they receive in taxes and run a deficit?
A. It allows the government to be flexible if something unexpected happens.
B. It can make it more difficult for businesses and consumers to borrow.
C. There is never a good enough reason to allow public debt.
D. The federal government cannot run a deficit.
A. It allows the government to be flexible if something unexpected happens.
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A bank has reserves of $50, deposits of $100, loans of $20, and government securities of $30. Assume the desired reserve ratio is 20 percent
a. What are the bank's assets and what are its liabilities? b. How much does the bank have in excess reserves? c. What can the bank do with its excess reserves that will affect the quantity of money?
What is rule of reason?
What will be an ideal response?
Philosopher John Rawls's theory of justice presents an argument in favor of income equality that relies on the
a. belief that, objectively, people would rather trade the uncertainties of fortune for the certainty of moderate income b. belief that human beings are perfectible, and it is the unequal distribution of property that creates unequal distribution of incomes c. argument that in a world of identical individuals, equality of incomes achieves the greatest welfare number of people d. argument that income equality breeds the most efficient use of economy's resources e. idea that private property originates from theft
The amount of money that a firm receives from the sale of its output is called
a. total gross profit. b. total net profit. c. total revenue. d. net revenue.