One important reason why the United States government is not likely to go bankrupt even with a large public debt is that it has
A. the ability to decrease interest rates and increase investment spending.
B. the capacity to pay off its outstanding debt with gold.
C. a strong military to protect it from creditors.
D. the power to print money to finance the debt.
Answer: D
You might also like to view...
One disadvantage of corporations is the double taxation of income to the owners.
Answer the following statement true (T) or false (F)
[Appendix material: calculus required] Given the benefit function B(Y) = 400Y ? 2Y2, the marginal benefit is:
A. 400 ? 2Y2. B. 800 ? 2Y. C. 400 ? 4Y. D. 200Y.
The amount of time it takes the government to determine the size of a tax policy is known as the
A. effect time lag. B. recognition time lag. C. Ricardian-equivalence time lag. D. action time lag.
By 2017, Pepsi and Coke were attempting to increase their profits in the bottled water market by introducing premium water brands. Pepsi and Coke introduced LIFEWTR and Smartwater, respectively, while competitors like Nestle and Danone produced their own
versions of premium water. The premium water brands marketed to compete with LIFEWTR and Smartwater would be considered A) complements to LIFEWTR and Smartwater. B) substitutes for LIFEWTR and Smartwater. C) inferior goods compared to LIFEWTR and Smartwater. D) normal goods compared to LIFEWTR and Smartwater.