The US Federal government is probably the ________ in the world.
A. riskiest lender.
B. riskiest borrower.
C. safest borrower.
D. safest lender.
Answer: C
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Typical goals for fiscal policy are
A) running high deficits and raising consumer prices. B) high prices for consumers and low prices for businesses. C) high employment and price stability. D) increasing the money supply so the government can spend more.
The __________ problem in the market for used cars is capable of collapsing the market for __________.
A. adverse selection; good used cars B. adverse selection; lemons C. moral hazard; good used cars D. moral hazard; lemons
The monopolist's supply curve
A) doesn't exist. B) is the region of its marginal cost curve above average cost. C) is identical to the demand curve. D) is the region of its marginal cost curve that lies above the marginal revenue curve.
A firm that minimizes average cost will not survive in the long run
a. True b. False