If the national debt is owed to foreigners,
A. the debt constitutes a burden to domestic citizens.
B. economic growth will necessarily be higher than if the debt were owed to domestic citizens.
C. paying off the debt will involve a transfer of resources within the country.
D. future interest payments on the debt are not a burden to the nation.
Answer: A
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The impact of Hurricane Katrina on consumers in the economy was to make them very pessimistic about their future incomes. How does this increased pessimism affect the aggregate demand curve?
A) This will move the economy down along a stationary aggregate demand curve. B) This will move the economy up along a stationary aggregate demand curve. C) This will shift the aggregate demand curve to the left. D) This will shift the aggregate demand curve to the right.
Interest earned on foreign holdings of U.S. federal, state and local government debt are recorded in the
A) services account. B) merchandise account. C) transfers account. D) capital account.
Monopolies may earn economic losses in the long run
a. True b. False Indicate whether the statement is true or false
Given a central bank's monetary policy reaction curve, if inflation increases by 1% why would policymakers likely have to increase the nominal interest rate by more than the increase in the expected rate of inflation?
What will be an ideal response?