A public debt that is owed to foreigners can be burdensome because:
A. payment of interest will necessarily have a deflationary effect on prices in the paying nation.
B. payment of interest will conflict with a nation's foreign aid programs.
C. payment of interest reduces the volume of goods and services available for domestic uses.
D. foreign interest rates are persistently higher than domestic interest rates.
Answer: C
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
When economists speak of markets, they primarily mean: a. places where production of goods and services take place
b. those locations where stocks and bonds of corporations take place. c. mechanisms that coordinate actions of buyers and sellers. d. the trillions of dollars that change hands in the foreign exchange markets.
Assume that a college student purchases only Ramen noodles and textbooks. If Ramen noodles are an inferior good and textbooks are a normal good, then the substitution effect associated with a decrease in the price of a textbook, by itself, will result in
a. a decrease in the consumption of textbooks and a decrease in the consumption of Ramen noodles. b. a decrease in the consumption of textbooks and an increase in the consumption of Ramen noodles. c. an increase in the consumption of textbooks and an increase in the consumption of Ramen noodles. d. an increase in the consumption of textbooks and a decrease in the consumption of Ramen noodles.
Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation. B. low economic growth and high inflation. C. high economic growth and low inflation. D. low economic growth and low inflation.