Interest payments on the national debt
A. Have high opportunity costs.
B. Do not affect the national debt.
C. Make it easier for the government to balance the national budget.
D. Are a redistribution of income from taxpayers to bondholders.
Answer: D
You might also like to view...
Inflation that is caused by an increase in aggregate demand without any change in aggregate supply is called
A) demand-push inflation. B) cost-pull inflation. C) cost-push inflation. D) demand-pull inflation.
If the shut down rule, p < AVC, is the same in the short run and the long run, explain why the shutdown prices may be different
What will be an ideal response?
If Chris can produce a service using fewer resources than Pat would, then Chris
a. has an absolute advantage in producing that service b. has a comparative advantage in producing that service c. has both an absolute advantage and a comparative advantage in producing that service d. is productively efficient e. cannot have a comparative advantage in producing that service
How do current tax laws in the United States favor employer-based health care insurance?
A) Individuals who receive health insurance benefits are allowed to deduct the value of these benefits from their taxable income. B) Individuals who receive health insurance benefits do not pay taxes on the value of these benefits. C) Employers who provide health insurance benefits are reimbursed by the government and are not taxed on these reimbursements. D) Health insurance companies that provide insurance to employers are subject to a lower tax rate than those insurance companies that provide insurance to private individuals.