The government can continuously issue new bonds to pay the interest on its outstanding bonds so long as
A) the real GDP growth rate exceeds the real interest rate.
B) the real interest rate exceeds the real GDP growth rate.
C) the real interest rate exceeds the nominal interest rate.
D) the nominal interest rate exceeds the cost of borrowing.
A
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A valid argument against redistributing income to achieve complete equality is that
a. income equality would destroy the social cohesiveness that exists among different income groupings. b. this would eliminate the monetary incentives to work and produce. c. the cost of obtaining the equality would be so deflationary as to promote economic instability. d. income equality would imply class segregation based on factors such as sex or race since income would be constant.
Which of the following is NOT one of the three primary sources of private investment funds flowing into developing nations?
A. portfolio investment B. World Bank and IMF loans C. foreign direct investment D. bank loans
If average variable costs are increasing while average total costs are decreasing, then
A) marginal cost must lie between average variable and average total costs. B) marginal cost must equal average variable cost. C) marginal cost must equal average total cost. D) fixed costs must be zero.
Before the period of modern economic growth:
A. only civilizations such as the Roman Empire experienced economic growth. B. rates of population growth virtually matched rates of output growth. C. most economies realized high rates of growth in output per person. D. output and population growth were stagnant.