If the national debt is owed entirely to U.S. citizens,
A. paying off the debt will necessarily stimulate growth.
B. future interest payments on the debt are not a burden to the nation as a whole.
C. future economic growth will necessarily be slowed.
D. the debt constitutes a burden to these citizens.
Answer: B
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What is the real interest rate if the nominal interest rate is 7 percent and the expected inflation rate is 7 percent?
A decrease in the supply of labor will ________ real wages and ________ employment
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
When a country allows trade and becomes an importer of coal,
a. the losses of the domestic producers of coal exceed the gains of the domestic consumers of coal. b. the losses of the domestic consumers of coal exceed the gains of the domestic producers of coal. c. the gains of the domestic producers of coal exceed the losses of the domestic consumers of coal. d. the gains of the domestic consumers of coal exceed the losses of the domestic producers of coal.
Chloe's Café sells gourmet cinnamon rolls. In the long run, the café incurs a total cost of $500 to produce 1,000 cinnamon rolls. If Chloe's Café exhibits constant returns to scale between 1,000 and 1,500 cinnamon rolls, the long-run average total cost for 1,250 cinnamon rolls is a. higher than $0.50. b. lower than $0.50. c. equal to $0.50
d. equal to $500.