An indirect cost of government debt is:

A. it can distort the credit market and slow economic growth.
B. it can cause hyperinflation.
C. it can cause unemployment below the natural rate.
D. All of these are true.


A. it can distort the credit market and slow economic growth.

Economics

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The dates of the "official" peaks and troughs of business cycles in the United States are determined by the:

A. Congressional Budget Office. B. Federal Reserve Board. C. Council of Economic Advisers. D. National Bureau of Economic Research

Economics

If the nominal interest rate on a one-year loan was 7%, the expected inflation rate over the year was 3% and the actual inflation rate over the year turned out to be 3.5%, then the expected real interest rate equals

A) 6.5%. B) 4.0%. C) 3.75%. D) 3.5%.

Economics

The beta for General Motors (GM) is 0.5, the risk-free rate is 4%, and the market return is 9%. What is GM's risk-adjusted discount rate?

A) 4% B) 4.5% C) 6.5% D) 9%

Economics

Which of the following is considered a contributive standard for the distribution of income?

A) rewarding workers according to their productivity B) rewarding workers according to their needs C) rewarding workers according to the number of their dependents D) all of the above

Economics