If we assume that government borrowing crowds out private investment, then future generations will have a smaller capital stock. Ricardo's view is that this will not be the case, because people are forward looking. Do you agree?
What will be an ideal response?
There is evidence that says that this is partially true, by not totally proven. People that are able
to do so will leave bequests to their children. The bigger question involves those who are not
able to give. Who in the future will be responsible for them?
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Which of the following positions might be taken by the ruler of a nation practicing mercantilism?
a. support of the merchant marine sector b. support for the elimination of trade barriers such as tariffs c. support for the reduction of government holdings of specie d. discouragement of exploration and colonization e. All of the above.
When banks store your money in a checking account, they give you checks. These checks:
A. become assets of the bank. B. are another form of money. C. become liabilities to you. D. make your money more liquid.
The major components of a bond include all of the following except its
A) maturity date. B) face value. C) price. D) coupon rate.
Do protectionist policies benefit producers, consumers, workers, or the government? Explain.
What will be an ideal response?