The statement that "repaying our enormous national debt will ruin the nation" is
a. true, because taxes will have to go up by such large amounts that American citizens will have very little income to live on.
b. true, because most of our national debt is owed to foreigners.
c. false, because the government will take emergency measures to prevent national bankruptcy.
d. false, because each time the principal on the debt comes due, the U.S. Treasury rolls it over by issuing more debt.
d
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A decrease in the price of a firm's output
A) raises the value of marginal product of each unit of labor. B) shifts the firm's demand for labor curve rightward. C) results in the firm increasing the amount of output it produces. D) None of the above is correct.
Which of the following statements is CORRECT?
A) A firm does not need to take into account its sunk cost when making current decisions. B) Long-run decisions are easily reversed. C) Short-run decisions are not easily reversed. D) In the long run, a firm can change its plant but not the quantity of its labor.
Faced with the evidence of poor working conditions and low wages in the border maquiladoras, economists
A) shrug their shoulders and ignore the issue. B) agree that trade theory is thus proven hollow and internally inconsistent. C) argue that U.S. consumers should not consume lettuce. D) argue that the poor conditions and low wages are actually improvements for the Mexican workers, and may be cited as gains-from-trade. E) argue that Mexico's generally high overall productivity offsets these conditions.
Show the effects of a permanent increase in the money supply
What will be an ideal response?