Suppose a country has a national debt of $2,000 billion, a GDP of $28,000 billion, and a budget deficit of $115 billion. How much will its new national debt be?
A) $2,115 billion
B) $1,885 billion
C) $28,115 billion
D) $25,885 billion
Ans: A) $2,115 billion
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Each of the following took place in the latter half of the 1990s except
A. a falling rate of inflation. B. a rising stock market. C. an economic boom. D. a rising unemployment rate.
The monetary rule is the view of the:
a. Monetarists that monetary policy is most important. b. Keynesians that monetary policy is most important. c. Classical economists that monetary policy is most important. d. Monetarists that the Fed should expand the money supply at a constant rate.
Suppose that Argentina and Chile are both engaged in the production of copper and wheat, and that Argentina has an absolute advantage in the production of both goods. If Chile has a comparative advantage in the production of copper, then Chile
A. has a lower opportunity cost for copper, which means that it should specialize in production of copper and engage in trade. B. has a lower opportunity cost for producing copper, but specialization is not feasible because Argentina has a lower monetary cost of copper production. C. should continue to produce copper, but only for domestic consumption, because trade is not a viable option. D. has a higher opportunity cost for copper, which means it should specialize in the production of wheat and engage in trade.
The Federal Deposit Insurance Corporation insures
A) banks against lawsuits. B) the deposits held in the Fed. C) the federal funds market. D) the deposits held in member banks.