Which of the following reduces the potential burden of an increase in debt on future generations?
a. the growth rate of output is high
b. in response to increased debt, parents save more to leave their children larger bequests
c. some current government spending benefits future taxpayers
d. All of the above are correct.
d
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The Depository Institutions Deregulation and Monetary Control Act of 1980 did not
a. require all commercial banks to join the Federal Reserve System. b. expand the use of Fed services to nonmember banks. c. increase FDIC and FSLIC insurance coverage. d. expand the availability of checking accounts.
What is the relationship between real and nominal interest rates?
a. They are both different names for the same thing. b. The real interest rate is the rate stated on a loan. c. Real interest rate is calculated by subtracting inflation from nominal interest rate. d. Nominal interest rate is calculated by subtracting inflation from real interest rate.
If the nominal wage rises from $10 per hour in period 1 to $15 per hour in period 2 as the expected price level rises from 1 to 3 while the actual price level rises from 4 to 5, then from period 1 to period 2:
a. the nominal wage is falling. b. the actual real wage is falling. c. the expected real wage is falling. d. all of the above.
Marginal utility is the
A) total satisfaction received from consuming a given number of units of a product. B) average satisfaction received from consuming a product. C) extra satisfaction received from consuming one more unit of a product. D) satisfaction achieved when a consumer has had enough of a product.