Is the United States in danger of a sovereign default because, like countries in the euro zone, it has high current account deficits and levels of public debt?
What will be an ideal response?
No. The United States has a central bank that can print money as needed to service its debt. It is in no danger of default. Euro zone countries, on the other hand, do not have individual central banks capable of printing money to pay off debt. Instead the European Central Bank and all member countries must collectively agree on monetary policy. Countries that have managed their affairs prudently are understandably unwilling to support the profligate behavior of other countries.
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Most entrepreneurs finance their purchases of real capital using their past saving
a. True b. False Indicate whether the statement is true or false
The basic reason for the gas lines in 1973 and 1979 was _____.
Fill in the blank(s) with the appropriate word(s).
market
What will be an ideal response?
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point C to Point B, ________ additional LCD TVs could be produced when the production of OLED TVs is reduced by 20.
A. exactly 30 B. exactly 60 C. fewer than 30 D. more than 30