If large budget deficits push government debt as a share of the economy to higher and higher levels, this will eventually lead to
A) higher interest rates on the government's bonds because it will be less risky to loan the government funds.
B) higher interest rates on the government's bonds because it will be more risky to loan the government funds.
C) lower interest rates on the government's bonds because it will be less risky to loan the government funds.
D) lower interest rates on the government's bonds because it will be more risky to loan the government funds.
B) higher interest rates on the government's bonds because it will be more risky to loan the government funds.
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Suppose that the price elasticity of demand for snow shovels is –1.2 . What would have to happen to the price of a snow shovel for the quantity demanded to fall from 2,000 to 1,800? Use the midpoint formula in your calculations
What will be an ideal response?
Which of the following are examples of goods that have been subject to voluntary export restraints?
A) Japanese cars and Chinese solar panels B) Belgian chocolates and French wines C) French wines and cheeses D) Japanese sushi and German cars E) Taiwanese electronics and Canadian barley
If we assume that velocity is constant, and if the money supply increases by 6 percent, we would expect, ceteris paribus, that the price level would
A) increase by 3 percent. B) increase by 6 percent. C) decrease by 3 percent. D) decrease by 6 percent.
If Allison's marginal utility of her 100th dollar of income is greater than Brad's marginal utility of his 10th dollar, then we can conclude:
a. money means more to Allison. b. money means more to Brad. c. Brad is richer than Allison. d. Allison is richer than Brad. e. nothing, since we can't make interpersonal utility comparisons.