The larger the debt and the inflation rate, the less debt will be eliminated by inflation.
Answer the following statement true (T) or false (F)
False
A larger inflation rate reduces the value of the dollars the government uses to pay back the debt, so more debt will be eliminated.
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Having interest rate stability
A) allows for less uncertainty about future planning. B) leads to demands to curtail the Fed's power. C) guarantees full employment. D) leads to problems in financial markets.
An increase in living standards is measured by which of the following?
A. The increase in real GDP per capita B. The increase in real GDP C. The increase in the number of workers employed D. The increase in private consumption spending
Refer to the above graph. Assume the market for this product is in equilibrium at the intersection of D2 and S1. The shift in supply from S1 to S2 is due to an excise tax imposed on the product. The incidence of the tax is:
a. $1 from the buyers and $3 from the sellers b. $3 from the buyers and $3 from the sellers c. $1 from the buyers and $1 from the sellers d. $4 from the buyers and $0 from the sellers
Smith' s construction of an 8-foot fence around his property will block his neighbor Johnson's scenic view. If Smith constructed a 6-foot fence, Johnson's view would not be blocked. If Johnson values his view at $1,000 and Smith values the extra 2 feet of fence at $500, then a possible resolution is that
a. Johnson makes a side payment to Smith of $750 not to build the fence so high. b. Johnson makes a side payment to Smith of less than $500 not to build the fence so high. c. Smith makes a side payment of $750 to Johnson to live with the fence. d. Smith makes a side payment of over $1000 to Johnson to live with the fence.