In a two-period model with default, if the nation defaults on its debts in the future period

A) there are no consequences.
B) it bears a cost v.
C) collateral is seized.
D) it faces a higher interest rate.


B

Economics

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Explain how the AD curve can be derived from the IS-MP model

What will be an ideal response?

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Firms in perfectly competitive markets are confined to making profits in the short run, but never a loss.

Answer the following statement true (T) or false (F)

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Considering its direct effect on income, which of the following policies is most likely to reduce a country's trade deficit?

A. An increase in the money supply B. An increase in taxes C. An increase in government spending D. A cut in taxes

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An important source of structural unemployment is

A) recessions. B) people looking for the right job decide to change jobs. C) unemployment insurance benefits. D) seasonal variations in aggregate demand.

Economics