Why has the federal government generally run budget deficits over the past several decades?
A) Political pressures make expenditures hard to control.
B) The federal government's control of the money supply enables it to borrow indefinitely without becoming unable to find creditors.
C) The public has accepted the notion that budget deficits can be good for the economy.
D) A combination of the three factors mentioned above.
D
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An engineer with a major power company decides to leave his job because he believes he has found a way to deliver Internet service across the electrical grid and he wants to start up his own business. He doesn't have very much cash or collateral
Which method of financing do you believe he will most likely use and why?
If the price of a good in the U.S. is $10 and the unit of foreign currency is the dinar, in which case is the real exchange rate 5/4?
a. the foreign price is 4 dinars and the exchange rate is 1/2 dinars per dollar b. the foreign price is 5 dinars and the exchange rate is 2.5 dinars per dollar c. the foreign price is 4 dinars and the exchange rate is 2 dinars per dollar d. the foreign price is 5 dinars and the exchange rate is 2/5 dinars per dollar