The fact that every dollar that the government spends or transfers must ultimately be provided by the taxes and user charges it collects plus government borrowing is known as the
A. government budget constraint.
B. tax collection constraint
C. government balance sheet constraint.
D. user charge constraint.
Answer: A
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The purchase of Michelin Tire Company by General Motors is an example of a horizontal merger
a. True b. False Indicate whether the statement is true or false
In this era of globalization, one of the main reasons why some countries have remained closed to the rest of the world is:
a. the fact that their governments follow policies that explicitly work against economic integration. b. racial discrimination. c. the fact that their governments impose extremely high mortgage taxes. d. the establishment of minimum wages. e. the fact that they are too poor to trade anything with the rest of the world.
Several countries in the world have failed to “converge” with industrialized countries. What does this mean about their economic growth rates? Explain why poorer countries have failed to "catch up," in terms of the pillars of economic growth. Are there any special problems facing these countries?
What will be an ideal response?
Which of the following equations is correct?
A) Real interest rate = Nominal interest rate + Inflation rate B) Real interest rate = Nominal interest rate - Inflation rate C) Real interest rate = Nominal interest rate × Inflation rate D) Real interest rate = Nominal interest rate / Inflation rate