Which of the following will cause a reduction in the debt-to-GDP ratio?
A) an increase in the real interest rate
B) an increase in the ratio of the primary deficit to GDP
C) an increase in the growth rate of output
D) all of the above
C
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Currency circulated by banks that could be redeemed for gold was called
A) junk bonds. B) banknotes. C) gold bills. D) state money.
Which of the following is true, according to the law of diminishing marginal utility?
a. The marginal utility of Diane's second Coke is greater than the marginal utility of her third pretzel, other things constant. b. The marginal utility of Diane's second Coke is greater than the marginal utility of Ken's third pretzel, other things constant. c. The marginal utility of Diane's second Coke is greater than the marginal utility of her third Coke, other things constant. d. The total utility of two Cokes is greater than the total utility of three Cokes, other things constant. e. The marginal utility of Diane's second Coke is greater than the marginal utility of Ken's third Coke, other things constant.
The infant-industry argument about tariffs argues that:
a. it is unfair to levy tariffs on items intended for use by infants. b. tariffs should be levied on foreign products that compete with new domestic industries only in the short run. c. if a newly established domestic industry can survive in the short run, a tariff should be levied to protect it from foreign competition in the long run. d. permanent tariffs should be levied on foreign products that compete with those produced by newly established domestic industries.
A rightward shift in the demand curve for product C might be caused by:
A. a decrease in the price of a product that is complementary to C. B. a decrease in income if C is a normal good. C. an increase in income if C is an inferior good. D. a decrease in the price of a product that is a close substitute for C.