Suppose the government runs a budget surplus in a given year. It can reduce its overall federal debt by:
A. not buying anything on credit.
B. buying back bonds it sold to the public.
C. forcing a change in net exports.
D. increasing taxes on luxury items.
Answer: B
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A ________ monopoly is a market structure in which a monopoly producer sells to a monopoly distributor.
A) successive B) double C) dual D) two-stage
If the output price of a product rises, the demand for capital will increase, raising the rental price of capital
a. True b. False Indicate whether the statement is true or false
The foreign exchange rate is the:
A. Real rate of interest on long-term government bonds in other nations B. Amount of one nation's currency that can be purchased with a unit of another nation's currency C. Value of imports of the goods and services and the exports of goods and services in an economy D. Rate at which money serves as a medium of exchange for goods and services that would typically be bartered
Changes in real planned investment spending have
A) an inverse relationship to changes in the interest rate. B) no identifiable relationship to changes in the interest rate. C) a direct relationship to changes in the level of household savings. D) a direct relationship to changes in interest rates.