Suppose the government has a $1.2 trillion budget deficit. If the government borrows $1.2 trillion to finance this deficit and finances the rest by printing money, the amount of new money created will be
A) $0. B) $600 billion. C) $1.2 trillion. D) $2.4 trillion.
A
Economics
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How can national security possibly be threatened when a nation engages in free trade and specializes on the basis of comparative advantage?
What will be an ideal response?
Economics
If an economist were to consult for a major Fortune 500 company, and he reached the conclusion the firm was making zero economic profit,
A) the firm's accounting profit would be greater than zero. B) the firm should go out of business immediately. C) the firm's accounting profits would be lower. D) the economist's numbers were probably wrong because economic profit can never be zero.
Economics