Methods of financing government spending are described by an expression called the government budget constraint, which states the following
A) the government budget deficit must equal the sum of the change in the monetary base and the change in government bonds held by the public.
B) the government budget deficit must equal the difference between the change in the monetary base and the change in government bonds held by the public.
C) the government budget deficit must equal the difference between the change in the monetary base and the change in government bonds held by the Fed.
D) the government budget deficit must equal the difference between the change in the monetary base and the change in government bonds held by the Treasury.
A
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In which of the following cases should the United States produce more noodles than it wants for its own use and trade some of those noodles to Italy in exchange for wine?
a. Americans know less than Italians know about cooking noodles. b. The United States has an absolute advantage over Italy in producing noodles. c. Italy has a comparative advantage over the United States in producing wine. d. The opportunity cost of producing a gallon of wine is the same for Italy as it is for the United States.
Does the movement of workers from other countries to the U.S. affect the demand for labor in the U.S., or does it affect the supply of labor in the U.S.?