Suppose the budget deficit is rising 3 percent per year and nominal GDP is rising 5 percent per year. The debt created by these continuing deficits is
a. sustainable, but the future burden on your children cannot be offset.
b. sustainable, and the future burden on your children can be offset if you save for them.
c. not sustainable, and the future burden on your children cannot be offset.
d. not sustainable, but the future burden on your children can be offset if you save for them.
b
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Tampering with the price mechanism
A. can be efficient for a while. B. cannot be attempted in a market economy. C. can enhance societal welfare if done properly. D. often produces undesired side effects.
If only one player in a game has a dominant strategy, there can be no Nash equilibrium
Indicate whether the statement is true or false
Other things being equal, the effect of an increase in the price of Coca-Cola would cause a(n):
a. upward movement along the demand curve for Coca-Cola. b. leftward shift in the demand curve for Coca-Cola. c. downward movement along the demand curve for Coca-Cola. d. rightward shift in the demand curve for Coca-Cola.
Assume a pure monopolist is currently operating at a price-quantity combination on the inelastic segment of its demand curve. If the monopolist is seeking maximum profits, it should:
A. retain its current price-quantity combination. B. increase both price and quantity sold. C. charge a lower price. D. charge a higher price.