Question

A budget deficit will require the government to issue bonds to fill in the gap in the budget.

True

False

In order to achieve economic efficiency in market economies like the U.S., the government must be stripped of its power to coerce.

True

False

Governments try to smooth business cycles by using the following policies,  except

		wage rate policies.
		government-spending policies.
		tax policies.
		interest rate policies.

Answer 1

1) :- it is true, a budget deficit will require the government to issue bonds to fill in the gap in the budget.

If the federal government has a budget deficit it can finance its spending by selling Treasury bonds.

2) :- it is false, In order to achieve economic efficiency in market economies like the U.S., the government must be stripped of its power to coerce.

Coercion is practice of forcing other party to act involuntary manner with by using threats and forces and if government use this it can supress people right voice for Short period . Not permanently.

3) :- wages rate policy is right option, Governments try to smooth business cycles by using the following policies,  except wages rate policy.

Wages policy are those policy under which government setting wages , and increase for worker like minimum wages requirements.