A deficit will burden future generations
A. because the obligation to pay it off must be faced sooner or later.
B. if it produces higher interest rates when the economy is near full employment.
C. because future generations will have to pay taxes to fund the interest payments to Americans who hold the debt.
D. All of the above are correct.
Answer: B
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Which of the following disciplines is not a social science?
a. psychology b. mathematics c. economics d. political science e. sociology
An expansionary monetary policy is most likely to produce an inflationary effect with little impact on output when the economy
a. is near full employment and the short-run aggregate supply curve is flat. b. is near full employment and the short-run aggregate supply curve is steep. c. has substantial unemployment and the short-run aggregate supply curve is steep. d. has substantial unemployment and the short-run aggregate supply curve is flat.
A beggar-thy-neighbor policy is
A. The imposition of import barriers for the purpose of curbing inflation. B. An attempt by a poor country to get more foreign aid and assistance. C. The imposition of trade barriers to increase domestic employment. D. The imposition of trade barriers for the purpose of expanding exports.
A natural monopoly
A. arises as a result of legal barriers to entry. B. occurs when one firm controls a natural resource. C. arises when one firm can meet the entire market demand at a lower average total cost than two or more firms. D. Both answers A and B are correct. E. Both answers A and C are correct.