A major reason that a public debt cannot bankrupt the federal government is because:
A. the public debt is mostly held by foreigners.
B. the federal government can draw on its gold reserves.
C. the public debt can be easily refinanced.
D. the federal government has the Social Security trust fund.
Answer: C
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What is an indifference curve and how does a preference map show preferences?
What will be an ideal response?
If $1 was equivalent to 120 Japanese yen in 2008 and 125 Japanese yen in 2010, it implies in 2010, there was:
a. a depreciation of the dollar against the yen. b. a depreciation of the yen against the dollar. c. an appreciation of the yen against the dollar. d. no change in the value of yen, but the dollar had weakened. e. no change in the value of dollar, but the yen had strengthened.
An individual who holds some of her wealth in the form of money in order to pay rent and buy groceries is illustrating the transactions demand for money
a. True b. False Indicate whether the statement is true or false