Assume that with existing tax and spending laws, government spending exceeds government tax revenues. To cover the resulting shortfall, the government must:
A) increase consumers' incomes.
B) print more money.
C) Borrow money in the financial markets.
D) lower interest rates.
C
Economics
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If C + I = Y and Y - C = S, then
A) I = 0. B) S = 0. C) S = I. D) Y = S + I.
Economics
If Brazil has a comparative advantage relative to Cuba in the production of sugar cane, then
A) the average cost of production for sugar cane is lower in Brazil than in Cuba. B) the implicit costs of production for sugar cane are lower in Brazil than in Cuba. C) the opportunity cost of production for sugar cane is lower in Brazil than in Cuba. D) the explicit cost of production for sugar cane is lower in Brazil than in Cuba.
Economics