Author Question: To the extent that a governmental price control succeeds in affecting price, it can be expected to ... (Read 52 times)

Hungry! · **on:** Jun 30, 2018

To the extent that a governmental price control succeeds in affecting price, it can be expected to lead to a corresponding:
a. reduction in the volume of sales only if the price is forced down.
b. reduction in the volume of sales if the price is forced down and an increase in the volume of sales if the price is forced up.
c. decrease in the volume of sales whether the price is forced up or down.
d. increase in the volume of sales whether the price is forced up or down.

Question 2

What is the common method of financing a budget deficit?

mmj22343 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

c

Answer to Question 2

The budget deficit is financed usually by issuing debt. The federal government in effect borrows an amount necessary to cover the deficit by issuing bonds, or IOUs, payable typically at some maturity date. The total of the values of all bonds outstanding constitutes the federal debt.