If a country has a collapsing currency due to large budget deficits financed by monetary expansion, the cure is to
A) default on sovereign debt and restructure the economy.
B) peg the currency to something different.
C) cut the deficit and raise interest rates.
D) increase the rate of inflation to reduce the real value of government debt.
C
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The figure above shows the marginal social cost curve of generating electricity, the marginal private cost curve, and the demand curve
If the government imposes a pollution tax to achieve the efficient level of production, the tax equals ________ per kilowatt hour. A) 0¢ B) 7.5¢ C) 10¢ D) 15¢ E) 2.5¢
In any year, real GDP
A) must always be less than potential GDP. B) might be greater or less than potential GDP. C) will always be greater than potential GDP because of the tendency of nations to incur inflation. D) always equals potential GDP.
Tax loopholes reduce the excess tax burden on individuals.
Answer the following statement true (T) or false (F)
The above figure shows a
A. long-run aggregate demand curve. B. short-run aggregate supply curve. C. long-run aggregate supply curve. D. short-run aggregate demand curve.