One reason the Chinese buy a great deal of U.S. government debt is because:
A. they have dollars left over from the sale of their goods to the U.S. and want to buy something dollar denominated.
B. the risk involved is lower for U.S. government bonds than for any other government bond in the world.
C. the rate of return for U.S. government bonds is higher than any other investment.
D. owning US debt is a sign of economic prosperity for China.
A. they have dollars left over from the sale of their goods to the U.S. and want to buy something dollar denominated.
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The crowding out effect refers to the ________ from ________ in the government's budget deficit
A) decrease in employment; an increase B) decrease in investment; an increase C) increase in investment; an increase D) increase in consumption; an increase E) decrease in consumption; a decrease
A system that assesses proportionately higher taxes on the rich than it does on the poor is called a ________
Fill in the blank(s) with correct word
When a baker exchanges a pie for dollars, this is an example of dollars serving as
A. a unit of account. B. a store of value. C. a medium of exchange. D. barter.
It is argued that the market will
A. not produce a nonexcludable public good. B. produce the socially optimal output of a nonexcludable public good. C. produce too much of a nonexcludable public good. D. produce a nonexcludable public good if marginal social benefits are equal to marginal private benefits. E. b and d