Monetizing the debt is undesirable given its impact on ________
A) investment
B) nominal income
C) tariff rates
D) prices
D
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If the market for roller blades is at a competitive equilibrium, and there are no external costs or benefits, then
A) marginal social benefit is equal to marginal social cost. B) the sum of consumer surplus and producer surplus is maximized. C) resources are being used efficiently. D) All of the above answers are correct.
For a household in a (c,c') graph, the optimal consumption bundle is
A) to the left of the endowment point. B) to the right of the endowment point. C) on the endowment point. D) dependent on other factors.
The equilibrating force in the credit market in the classical model is
A) the interest rate. B) the price level. C) full employment. D) fiscal policy.
Why do externalities arise?
a. The costs of production are not borne by the producer. b. An economic activity imposes a burden on those who are not directly involved in it. c. The consumption of a public good is nonexcludable. d. The government produces goods and services which are consumed by only a particular group of people. e. Goods of mass consumption are not produced as they do not yield profit for the producers.