« previous next »

Author Question: Suppose the government has a 1.2 trillion budget deficit. If the government borrows 1.2 trillion to ... (Read 77 times)

Kthamas

  • Hero Member
  • *****
  • Posts: 546
on: Jun 30, 2018
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.

Question 2

Refer to the scenario above. Plutoland's current account would show a balance of ________.
 
  A) 14 billion B) -6 billion C) -10 billion D) 4 billion


dellikani2015

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

This chart illustrates the bottom up assumption about government. In this, attitudes, culture, and This chart illustrates the bottom up assumption about government. In this, attitudes, culture, and
In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai In 2013, Americans learned that the federal government massively surveys their phone calls and e-mai
In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con
A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan
Jet streams and Earth’s heat budget Jet streams and Earth’s heat budget
Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ... Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ...
Video: Alternative Energy Sources

For a complete list of videos, visit our video library