The government deficit does NOT place a burden on future generations when
A) taxes are eventually raised to pay interest on the additional debt.
B) the borrowed funds are used for productive government investment.
C) borrowing from foreigners offsets the deficit, so that private investment is not crowded-out.
D) the borrowed funds are transferred to the purchase of nondurable consumer goods.
B
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In understanding and analyzing "market demand," we focus on how much all buyers are
A. willing and wanting to buy at different prices. B. willing and able to buy with their given income. C. willing and able to buy at different prices. D. actually buying now and in the recent past at various prices.
Milton Friedman and Edmund Phelps contributed which insight(s) to Phillips curve analysis?
A) that inflation is directly related to expectations of future inflation B) that inflation is negatively related to the unemployment gap C) that in the long run unemployment will be at the natural rate D) all of the above E) none of the above
Continued economic growth is desirable if it means that the standard of living continues to increase.
Answer the following statement true (T) or false (F)
Suppose a farmer is a price taker for soybean sales with cost functions given by TC = .1q2 + 2q + 30 MC = .2q + 2 If P = 6 , the profit-maximizing level of output is
a. 10 b. 20 c. 40 d. 80