If the government fiscal deficit equals $240 million and government borrowing equals $120 million, what is the change in the money supply in the economy?
a. $120 million
b. $240 million
c. $360 million
d. $480 million
e. $600 million
a
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The budget deficit or surplus is:
A. well defined and straightforward to measure. B. difficult to measure and can be defined legitimately in several ways. C. so arbitrarily defined that it is meaningless. D. well defined but frequently distorted by creative but improper accounting practices.
When the inflation rate is expected to be zero, Steve plans to lend money if the interest rate is at least 4% a year and Cindy plans to borrow money if the interest is no more than 4% a year. Steve and Cindy make a loan agreement for one year at an interest rate of 4% a year when the inflation rate is zero. But if Steve and Cindy expect an inflation rate of 1% a year, they would be willing to make a loan agreement at ... % a year
What will be an ideal response?
Public goods will not be produced in the private sector because entrepreneurs cannot ____________________.
Fill in the blank(s) with the appropriate word(s).
When GDP is calculated as the final demand for goods and services by consumers, businesses, governments, and foreigners, then GDP is measured by
A. the sum of all value added. B. the sum of all productive resource inputs. C. the sum of all factor payments. D. the sum of final goods and services.