If Japan's debt level is much higher than that of the United States, the United States has more flexibility to run deficits.
Answer the following statement true (T) or false (F)
False
Most U.S. debt is held externally as opposed to internally, which means that defaults can have major consequences.
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If supply is upward-sloping and demand is downward sloping, what happens to the equilibrium real risk-free interest rate and quantity of real loanable funds per time period if there is a decrease in the expected rate of inflation?
a. The real risk-free interest rate rises and the quantity per time period falls. b. The real risk-free interest rate rises and the quantity per time period rises. c. The real risk-free interest rate does not change and the quantity per time period does not change. d. The real risk-free interest rate rises and the quantity per time period is uncertain. e. The real risk-free interest rate is uncertain and the quantity per time period is uncertain.
Which of the following could cause nominal GDP to decrease next year, but real GDP to increase?
A) The price level rises and the quantity of final goods and services produced rises. B) The price level falls and the quantity of final goods and services produced rises. C) The price level rises and the quantity of final goods and services produced falls. D) The price level falls and the quantity of final goods and services produced falls.
The graph below represents the supply and demand for labor in a purely competitive market. The price of labor that an individual firm in this market would take as given is:
A. 0a
B. 0c
C. Higher than 0a
D. Higher than 0c
The host at a party offers Justin a sixth beer. Justin says, “No thanks, man. The marginal utility of that fifth beer was, like, 20 cents, but the marginal utility of the sixth would be minus 10 cents.” If Justin consumes the sixth beer, his total utility will
A. rise by 10 cents. B. reach a plateau and remain constant. C. fall by 10 cents. D. fall below his marginal utility.