How does a government budget deficit occur?
A) A government's tax revenues exceed its spending.
B) If a nation carries a public debt, it must be running a deficit every year.
C) A government's spending exceeds its tax revenues.
D) A nation earns more on exports than it spends on imports.
C
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M1 money includes all but which one of the following?
a. Savings accounts b. Paper money c. Coins d. Checkable deposits
Use the following graph to answer the next question.
Given the graph above, which level of output should the perfectly competitive firm choose?
A. X2, since at this level of output the difference between MR and MC is maximized B. X3, since any increase in output beyond that point will reduce profits C. X1, since a lower level of output will reduce profits D. either X1 or X3, since profits will be the same