A bond purchaser is lending money to a corporation.
Answer the following statement true (T) or false (F)
True
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Monetizing the debt occurs when ________
A) government securities are issued B) government securities are sold by the central bank C) government securities are bought by the central bank D) tax revenues fall short of government expenditures
In general, if a consumer good is produced domestically and consumed domestically, an increase in its price will have which of the following effects?
a. The consumer price index will increase relatively more than will the GDP deflator. b. The consumer price index and the GDP deflator will increase by the same amount. c. The consumer price index will increase relatively less than will the GDP deflator. d. One cannot generalize about the increase in the consumer price index relative to the increase in the GDP deflator.
U.S. international trade has
a. decreased because of a decrease in the trade of goods with a high value per pound. b. decreased because of an increase in the trade of goods with a high value per pound. c. increased because of a decrease in trade of goods with a high value per pound. d. increased because of an increase in trade of goods with a high value per pound.
On the graph for a monopolist’s profit, area DABC shows ______.
a. marginal cost
b. total cost
c. marginal profit
d. total profit