According to most economists, when can government debt lead to higher interest rates?
a. Always.
b. Never.
c. When government spends money wastefully.
d. When misperceptions or default risks are significant.
d. When misperceptions or default risks are significant.
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In arriving at the quantity of output and price of its product, a company
A. chooses either output or price, and consumer demand determines the other. B. has no control over either quantity or price. C. makes two decisions by setting both optimal output and optimal price. D. generally leaves both quantity and price decisions to consumers.
If a perfect competitor's ATC curve is above its demand curve for every possible output the firm is
A. losing money in the short run. B. losing money in the long run. C. making a profit in the short run. D. making a profit in the long run.
The person most likely to receive a payment from a corporation in a year of losses is the
A. bondholder. B. investment banker. C. common stockholder. D. preferred stockholder.
The focus for most central banks today is:
A. the quantity of M2. B. interest rates. C. controlling the size of the money multiplier. D. the quantity of M1.