Author Question: Suppose the government has a 375 billion budget deficit. If the government creates 225 billion of ... (Read 107 times)

mia · **on:** Jun 30, 2018

Suppose the government has a 375 billion budget deficit. If the government creates 225 billion of new money to finance this deficit and finances the rest by borrowing, the amount borrowed from the public will be

A) 150 billion. B) 225 billion. C) 375 billion. D) 600 billion.

Question 2

Mike lives and works as a musician in the U.S. However, he sometimes plays in concerts in foreign countries. The money he earns from these concerts are treated as ________ in the U.S. current account.

A) imports B) exports
C) factor payments from foreigners D) transfer receipts