A government with a national debt that is large and growing relative to the size of the economy will
a. eventually find it difficult to borrow in global credit markets.
b. be able to borrow at lower interest rates than countries with less outstanding debt.
c. have to allocate a large and growing amount of tax revenue to the payment of interest on the outstanding debt.
d. do both a and c.
D
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The most direct way in which money eliminates the need for a double coincidence of wants is through its use as a
A) medium of exchange. B) standard of deferred payment. C) store of value. D) unit of account.
The historical record for the United States for the past 100 years shows
A) growth in real GDP per person during most years. B) economic growth for about half the years and economic decline for the other half. C) growth until 1970 and then a period of constant per person real GDP. D) continuous economic growth, although at different rates, throughout the entire century.
The idea that expectations can affect the velocity of money is a critical factor in understanding
a. the Keynesian view of the quantity theory of money b. the classical view of the quantity theory of money c. the monetarist view of the quantity theory of money d. why GDP must increase when the price level increases e. why price changes cause inflation
The effect throughout the entire economy of one individual's increase in spending will be
a. less than the individual's spending. b. equal to the individual's spending. c. greater than the individual's spending. d. offset by another individual's saving.