Under what condition can the U.S. government continue to pay interest on a rising debt without eventually needing to increase the average tax rate?
a. If the national debt grows at the same rate as nominal GDP
b. If the nominal interest on the national debt grows faster than nominal GDP
c. If the total interest payments on the national debt grow faster than nominal GDP
d. If the national debt grows faster than nominal GDP
e. If the real interest on the national debt grows faster than real GDP
A
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For a monopsonist, marginal factor cost exceeds the wage rate since
A) more workers have to be paid the prevailing wage rate. B) the supply of labor is perfectly elastic. C) when new workers are hired the wage rate must be increased for all workers and not just for the additional workers. D) the labor demand is downward sloping.
Which of the following people are liquidity providers?
A. Used car salesman B. Antiques dealer C. Bank teller D. All of these are considered liquidity providers.
When a supply curve is relatively flat,
a. sellers are not very responsive to changes in price. b. supply is relatively inelastic. c. supply is relatively elastic. d. Both a and b are correct.
Sales taxes are
A. assessed on the prices paid on a large set of goods and services. B. based on each individual taxpayer's income level. C. levied on purchases of a particular good or service. D. collected only by the U.S. government.