Sovereign debt crisis, a short-run phenomenon, may lead to the long-run consequence of debt ________
A) intolerance
B) distortion
C) seignorage
D) repudiation
A
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Protectionist policies:
A) restrict the importation of foreign goods and services. B) shift the supply curves for the protected goods and services to the right in the country imposing the restriction. C) generally result in increased benefits in the long run in all countries. D) are no longer advocated by powerful interests.
The principle of comparative advantage indicates that mutually beneficial international trade can take place only when:
Tariffs are eliminated Transportation costs are almost zero Relative costs of production differ between nations A country can produce more of some product than other nations can
Suppose you borrow $500 for a year and the lender discounts $75 of interest at the time the loan is made (giving the borrower only $425). The interest rate on this loan is about:
A. 12.5 percent. B. 14.5 percent. C. 17.6 percent. D. 10 percent.
From 1995 to 2001, the U.S. public debt relative to GDP:
A. Increased, and fell since then B. Decreased, and increased since then C. Increased steadily and continued to increase since then D. Was roughly constant, but has increased since