Assuming seigniorage equals zero, the federal debt is ________ and the budget deficit is ________
A) a flow variable representing the total value of government bonds outstanding; a stock variable representing the yearly increase in value of newly issued government bonds
B) a stock variable representing the total value of government bonds outstanding; a flow variable representing the yearly increase in value of newly issued government bonds
C) a flow variable representing the yearly increase in value of newly issued government bonds; a stock variable representing the total value of government bonds outstanding
D) a stock variable representing the yearly increase in value of newly issued government bonds; a flow variable representing the total value of government bonds outstanding
B
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If the price of a firm's output rises, its
A) marginal product of labor increases. B) value of marginal product decreases. C) demand for labor increases. D) demand for labor decreases.
Which of the following determines the amount of money the banking system as a whole can create?
A) the limit on profits by banks imposed by the U.S. Congress B) the quantity of vault cash held by banks C) the gold reserves held by the Federal Reserve D) the quantity of bank reserves