Which of the following will make it more difficult for the United States to control the growth of the federal debt in the decade ahead?
a. Debt financing makes it possible for elected political officials to provide voters with highly visible current benefits without having to impose visible current cost in the form of higher taxes.
b. The movement of the large baby-boom generation into the retirement phase of life will make it more difficult to control federal spending.
c. The recent growth of the federal debt as a share of GDP will mean higher interest costs in the future.
d. All of the above.
D
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An open-market purchase by the Federal Reserve creates an excess _____ of money. This causes interest rates to _____ and investment to _____. The change in investment causes aggregate demand to shift to the _____
Fill in the blank(s) with correct word
If a country's economic decisions are made by an individual or small number of individuals, then it has a:
A. capitalist economy. B. free-market economy. C. open economy. D. centralized economy.
The table below shows how the total cost of producing pottery vases varies with the number produced per day. The vases are sold in a perfectly competitive market, and the current equilibrium price is $50.
a. 4 vases per day. b. 2 vases per day. c. 5 vases per day. d. 3 vases per day. e. 1 vase per day.
An increase in income will
A) shift the budget constraint to the right. B) make the budget constraint steeper. C) make the budget constraint flatter. D) make the budget constraint more bowed.