If the national debt is owned by domestic citizens:
a. the debt will not have to be repaid.
b. future interest payments transfer funds from one group of Americans to another.
c. the debt will have to be repaid first to domestic creditors, then to foreign creditors.
d. future interest payments will go to pay foreign debt first, then debt owed to American citizens.
b
You might also like to view...
Consider the following information for a simultaneous move game: If you advertise and your rival advertises, you each will earn $5 million in profits. If neither of you advertises, you will each earn $10 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn $15 million and the non-advertising firm will earn $1 million. If you and your rival plan to hand your business down to your children (and this "bequest" goes on forever), then a Nash equilibrium when the interest rate is zero is:
A. for each firm to not advertise until the rival does, and then to advertise forever. B. for each firm to advertise until the rival does not advertise, and then not advertise forever. C. for your firm to always advertise when your rival does. D. for your firm to never advertise.
The more product differentiation in the market, the ________ the firm specific demand curve. The less product differentiation in the market, the ________ the firm specific demand curve.
A. steeper; flatter B. flatter; steeper C. more concave; more convex D. more convex; more concave
If P > ATC, then a profit-maximizing, monopolistically competitive firm earns ________ economic profits.
A. positive B. zero C. negative D. either positive or negative
According to the economic way of thinking, alcohol prohibition in the U.S
A) effectively destroyed peoples' incentives to produce and drink liquor. B) abolished the supply and demand process in liquor. C) led to a surge in prices and considerable profit opportunities for people willing to break the law. D) failed to make liquor truly illegal.