If all U.S. government bonds are held by U.S. citizens, then:
a. the bondholders will not earn interest on the bonds.
b. there is no tax liability for funding the U.S. government's debt.
c. there is no net change in national wealth when the national debt changes.
d. the tax liability for funding the debt is not offset by the interest earnings of bondholders.
e. the tax rates are not increased to repay the outstanding debts.
c
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Other things equal, an increase in the tax on dividends is likely to result in all of the following EXCEPT:
A) higher expected return on bonds relative to stocks B) increased demand for bonds C) lower interest rates D) higher interest rates
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and monetary base in the context of the Three-Sector-Model? a. The real risk-free interest rate falls and monetary base falls
b. The real risk-free interest rate rises and monetary base falls. c. The real risk-free interest rate and monetary base remain the same. d. There is not enough information to determine what happens to these two macroeconomic variables.
The marginal product of the 14th worker is 8 and the firm sells its output for $4 per unit. If labor is the only variable cost, then the value of the 14th worker's marginal product is
A. $12. B. $32. C. $4. D. $2.
The substantial increase in clear property rights has severely impeded growth in many developing countries.
Answer the following statement true (T) or false (F)