The practice of "monetizing the debt" is traditionally feared because it is thought to cause
A) unemployment.
B) inflation.
C) a falling price level.
D) a liquidity trap.
B
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Refer to Figure 27-11. If government purchases increase by $100 billion and lead to an ultimate increase in aggregate demand as shown in the graph, the difference in real GDP between point A and point B will be
A) less than $100 billion. B) $100 billion. C) more than $100 billion. D) There is insufficient information given here to draw a conclusion.
Which of the following is most likely to be a monopoly?
a. The local fast-food restaurant b. The local electricity distributor c. The local bathroom fixtures shop d. The local television broadcaster
Goods and services that are nonexcludable and nonrivalrous, and tend to be indivisible are ______
A. public B. private C. both public and private D. neither public nor private
Which of the following contributes to the efficiency of markets?
A) Governments play an active role in the day-to-day operations of markets. B) Markets are able to bring about an equitable distribution of goods and services. C) Markets promote equal standards of living. D) Markets promote competition and voluntary exchange.