If the government's expenditures exceeded its receipts, it would likely
a. lend money to a bank or other financial intermediary.
b. borrow money from a bank or other financial intermediary.
c. buy bonds directly from the public.
d. sell bonds directly to the public.
d
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Costs are related to output because
A) output is variable over the long run. B) inputs are related to output. C) some inputs are fixed. D) inputs must be paid their opportunity costs.
Why does a change in GDP affect unit costs and the price level?
a. as GDP increases, productivity increases. b. as GDP increases the price of non-labor inputs increases and the nominal wage tends to increase. c. as GDP decreases, there are efficient gains d. as GDP increases, economies of scale allow for lower unit costs. e. as GDP increases the price of non-labor inputs decreases and the nominal wage tends to increase.