An indirect cost of government debt is:
A. it can distort the credit market and slow economic growth.
B. it can cause unemployment below the natural rate.
C. it can cause hyperinflation.
D. All of these are true.
Answer: A
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The above figure shows the market for rice in Japan. S2 represents the domestic supply curve, and S1 represents the world supply curve. A $1 per unit tariff has the same effect on producer and consumer surplus as a quota of
A) 10 units. B) 20 units. C) 30 units. D) 40 units.
Suppose a lottery ticket costs $1and has a jackpot of $1 million. What must the probability of winning nothing be if the bet is fair?
a. 99% b. 99.9% c. 99.999% d. 99.9999%
Firms that maximize sales always produce more than profit-maximizing firms
a. True b. False Indicate whether the statement is true or false
Give a scenario of a perfectly competitive firm finding the profit-maximizing level of output over a several-year period.
What will be an ideal response?