Suppose the government has a $440 billion budget deficit. If the government borrows $330 billion to finance this deficit and finances the rest by printing money, the amount of new money created will be
A) $90 billion. B) $110 billion. C) $440 billion. D) $770 billion.
B
You might also like to view...
One economic application of the slope of a line is
a. measuring unlimited wants b. behavioral analysis c. marginal analysis d. allocative efficiency e. rational self-interest
Which of the following statements regarding the gross domestic product is true? a. It is useful in comparing the overall performance of different economies at the same time
b. It measures aggregate income in an economy over a period of ten years. c. It measures the value of all goods and services produced in the world during a given period. d. It is a measure of an economy's price level during a particular year. e. It records the cumulative value of all goods and services produced by domestically owned factors of production.