Which of the following statements is true?
a. The national debt as a percentage of GDP is greater today than during any other period in our nation's history.
b. A sizeable external national debt will transfer purchasing power away from foreigners to domestic citizens.
c. Keynesian theory assumes a total crowding out effect associated with deficit spending.
d. U.S. national debt is 12 times its size in 1980.
d
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If the government finances its spending by issuing debt to the public, the monetary base will ________ and the money supply will ________
A) increase; increase B) increase; decrease C) decrease; increase D) not change; not change
Which of the following is an example of a positive externality?
a. Smoking a cigarette b. Driving a less fuel efficient vehicle c. Setting up a chemicals factory in a residential area d. Overuse of chemical fertilizers e. Beekeepers keeping bees for honey
In the above figure, the demand curve for Good A shifts from D1 to D2 in Graph A when the price of Good B changes from P1 to P2 in Graph B. We can conclude that
A. Good A and Good B are complements. B. Good A and Good B are unrelated. C. Good A and Good B are substitutes. D. Good A is a normal good but Good B is an inferior good.
If an amount "$AAA" today earns interest at a rate of "i"% per year, then the accumulated amount at the end of "n" years will be:
A. $AAA × n × i B. $AAA × in C. ($AAA)n × (1 + i) D. $AAA × (1 + i)n