Economic Final Exam

Every time you buy something you create a transaction, each transaction consists of a:

• Productivity Growth

• Short term debt cycle

• long term debt cycle

• Buyer and Seller

when we say money + credit it gives us a total of

• Total Spending

• Debits

• Money

• Credit

A central goverment that collects taxes and spends money and a central bank wich is different from other buyers and sellers because it...

• It have all the money in the country

• have the power of the president

• Controls the amount of money and credit in the economy

• its the bigger lender in the country

How we could define credit ?

• Is money loaned to you at an interest rate of

• When you have no money and you borrow

• All the money in the world

• just a simple transaction

what is the difference between lender and borrower

• one spends the money and the other doesn’t

• One has the money and one needs

• its just about inflation

• only those who lend money at interest

What it meands a credit worthy borrower

• The ability to repay and collateral if he cant

• a person who have a lot of money

• is who have debts

• the pepople spend their money

What it means Deflation

• when something deflates

• price increases

• Economic activity decreases and we have a recession

• No Idea

What it means Inflation

• when prices go up over a certain amount of time

• When you are fat

• when the money it is not enought

• think of the economy as being not creditworthy

When a country enters an economic crisis, what solutions are available?

• borrowing from other countries

• Cut Spending, Reduce Debt and Print Money

• eliminating the poor

• sell the country to someone with money

Is printing more money a solution to get out of the crisis?

• Is not a long-term solution

• The more money the better

• Money solves everything

• is the ultimate solution