The size of the national debt relative to GDP will not be reduced by
a. paying off some of the debt.
b. lowering the federal deficit.
c. having the GDP grow faster than the debt.
d. having creditors forgive part of the debt.
d. having creditors forgive part of the debt.
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Refer to Figure 12.5. If exchange rates are floating, an expansionary monetary policy would best be represented by a movement from ________ in panel (a) and a corresponding movement from ________ in panel (b)
A) point A to point B; point X to point Y B) point C to point A; point X to point Y C) point D to point C; point Y to point X D) point B to point D; point Y to point X
Macroeconomics would be concerned with
A) implications of changes in unemployment and inflation. B) the effects on individual consumers of changes in the price of gasoline for a business. C) the effects of a tax on beer. D) the effects of wage increases on steel manufacturers.
Economic profits are earned when
A) price equals marginal cost. B) price equals average variable costs. C) price equals average total costs. D) price is greater than average total costs.
A rise in the price level has a direct effect on spending because
A. the real value of the money people have decreases and they can buy less with it. B. the real value of the money people have varies directly with the price level. C. a higher price gives people more money, and so the more goods and services they can buy. D. people like to spend more when prices are higher.