Which of the following would be true if all the national debt were owned internally?
A. The federal government would not need to refinance the national debt.
B. The federal government would not need to worry about raising taxes to pay interest on the national debt.
C. We would still be concerned about the effect on the distribution of income from interest payments on the national debt.
D. Budget surpluses would be more likely than budget deficits.
Answer: C
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A) the demand for Argentinean pesos exceeded the supply of the pesos. B) the demand for Argentinean pesos exceeded the supply of U.S. dollars. C) the supply of Argentinean pesos exceeded the demand for the pesos. D) the supply of Argentinean pesos exceeded the demand for U.S. dollars.
_____ refers to actions that one party in a transaction takes based on his private information and that affect the payoff to the other party
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An increase in ________ reduces the money supply since it causes the ________ to fall
A) reserve requirements; monetary base B) reserve requirements; money multiplier C) margin requirements; monetary base D) margin requirements; money multiplier
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