A monopolized market is characterized by:
a. a sole supplier, no close substitutes, and free entry.
b. a sole supplier, no close substitutes, and barriers to entry.
c. a sole supplier, many close substitutes, and barriers to entry.
d. a sole supplier, a few close substitutes, and free entry.
b
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Which of the following federal agencies is NOT engaged in economic regulation?
A) the Federal Reserve B) Federal Aviation Administration C) Food and Drug Administration D) Federal Deposit Insurance Corporation
Monopolistically competitive firms have a "monopoly" element to them because
A. There is only one seller. B. The cross-price elasticity is very high. C. Brand loyalty gives them a captive audience. D. There are high barriers to entry.
Refer to the figure below. Based on the diagram, the nominal interest rate equals ________ and the money supply equals ________. 
A. 7%; 300 B. 5%; 500 C. 1%; 500 D. 3%; 700
At the beginning of year one, there is no government debt outstanding. The government runs a $100 billion deficit in year one. Interest at a nominal rate of 10% must be paid starting in year two
Assume nominal GDP in year one is $2000 billion and the nominal growth rate of GDP is 4%. Assume the government balances its primary budget in the future and the interest rate and growth rate do not change. (a) What will be the government deficit in years two, three, four, and five? (b) What will be the value of government bonds outstanding at the end of the fifth year? (c) What will be the debt—GDP ratio at the end of year five?