Government debt is not a problem as long as the:
a. Assets a government purchases increase national productivity by an amount less than the private sector.
b. Government spends the funds on consumption goods rather than investment goods, because consumption goods do not have to be amortized.
c. Government can borrow from foreigners.
d. Government can print money and repay the debt any time it wants.
e. Nation's equity level is rising.
.E
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If actual inflation is greater than expected inflation,
A) the unemployment rate rises. B) the Phillips curve is a vertical line. C) real wages fall. D) real wages rise.
Positive externalities arise when
A) an unprofitable firm is shut down. B) a profitable firm is regulated. C) tax rates are reduced. D) production of a good generates benefits that spill over to third parties.
In the Dred Scott decision (1857), the Supreme Court declared that:
a. Congress could not admit a free state without simultaneously admitting a slave state. b. slavery was not legal in the western territories. c. fugitive slaves were not legally protected from bounty hunters. d. Congress could not prohibit slavery in the western territories.
Suppose a bank has $100,000 in deposits, a required reserve ratio of 20 percent, and total reserves of $20,000. Then this bank can make new loans in the amount of
A. $20,000. B. $40,000. C. $0. D. $100,000.