Author Question: If government purchases are 400 million, taxes are 700 million, and transfers are 200 million, which ... (Read 113 times)

geoffrey · **on:** Jun 29, 2018

If government purchases are 400 million, taxes are 700 million, and transfers are 200 million, which of the following is true?

A) Public saving is 100 million. B) The budget deficit is 100 million.
C) The budget deficit is 500 million. D) Public saving is 500 million.

Question 2

When a grocery store accepts your 5 bill in exchange for bread and milk, the 5 bill serves as a

A) unit of account. B) standard of deferred payment.
C) store of value. D) medium of exchange.