Other things equal, an increase of Treasury bonds from $100 billion to $120 billion in the economy would:
A. not change the size of the public debt.
B. increase the public debt from $460 billion to $480 billion.
C. increase the public debt from $400 billion to $420 billion.
D. decrease the public debt by $20 billion.
B. increase the public debt from $460 billion to $480 billion.
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Demand for a product is given by Q = 100 - P and supply is given by Q = P - 10. If the quantity demanded rises by 10 units at every possible price, then the equilibrium price will
a. increase by $5 b. increase by $10 c. decrease by $5 d. increase by $7.50
If two events are perfectly negatively correlated, then
A) diversification can reduce but not eliminate risk. B) diversification can eliminate risk. C) diversification has no impact on risk. D) diversification cuts risk in half.
Refer to Figure a. Charlie and Joe both want to ride shotgun with their mother, so they play a game of rock-paper-scissors to determine who gets to sit in the front seat. In the table, -1 represents a loss, 1 a win and 0 a tie, and Joe's payoff is shown in the upper left-hand corner of each cell, while Charlie's appears in the lower right-hand corner. What is Charlie's dominant strategy?
A. Rock
B. Paper
C. Scissors
D. Charlie does not have a dominant strategy.
According to Ricardian Equivalence, consumers may not respond to a tax cut ________
A) if that tax cut is directed solely at upper income groups B) if that tax cut is directed solely at lower income groups C) since they understand a tax cut today will lead to a tax increase in the future D) if they lack patriotic fervor