If a country with a large government debt uses money creation to service and repay the debt, this will lead to
a. lower interest rates.
b. an appreciation of the nation's currency in the foreign exchange market.
c. inflation, higher interest rates, and a financial crisis.
d. rapid economic growth, as the expansionary monetary policy stimulates the economy and generates the additional tax revenue to service the larger debt.
C
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Over the business cycle, factors such as the quantity of capital, human capital and technology
A) change randomly, sometimes growing, sometimes falling. B) change drastically, fluctuating more than the quantity of labor employed. C) fluctuate about the same amount as the quantity of labor employed. D) grow but do not fluctuate as much as the quantity of labor employed. E) do not grow and are therefore not the source of economic growth.
Demand curves slope downward to the right
a. True b. False Indicate whether the statement is true or false
What is the relationship between accounting and economic profits?
A) Accounting profits are always larger than economic profits. B) Economic profits are always larger than accounting profits. C) There is no relationship between economic and accounting profits. D) Economic profits are always negative.
The change in total revenues resulting from a change in output of one unit is
A) average revenue. B) marginal revenue. C) economic revenue. D) diminishing revenue.