The most likely way the public debt burdens future generations, if at all, is by:
A. reducing the current level of investment.
B. reducing real interest rates.
C. causing deflation.
D. causing future unemployment.
Answer: A
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The above figure shows the market for winter jackets. In an effort to keep the nation warm, the president places a price ceiling of $100 in the market for winter jackets. As a result, there is a
A) shortage equal to 150,000 jackets. B) surplus equal to 150,000 jackets. C) surplus equal to 300,000 jackets. D) shortage equal to 250,000 jackets. E) shortage equal to 100,000 jackets.
In the absence of government action, the private market would probably not provide as much police protection as is socially desirable because: a. individuals are too poorly informed about the value of police protection
b. the private benefits are greater than the private costs of providing police protection. c. it is difficult to prevent free riders from benefiting from some police protection services. d. the use of police services by one person will significantly reduce the police protection available to others.
Why would a firm in a perfectly competitive market always choose to set its price equal to the current market price? If a firm set its price below the current market price, what effect would this have on the market?
The market supply of labor represents the sum of all individual labor supply decisions.
Answer the following statement true (T) or false (F)