The U.S. federal government is unlikely to default on its bond payments because:
A. if necessary, it can print the money needed to make payments on time.
B. its bond payments are insured.
C. the U.S. federal budget usually runs a surplus, providing ample funds for repaying debt.
D. of all of these.
A. if necessary, it can print the money needed to make payments on time
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Given the table above, suppose consumption in period two is $40,000. Then, the interest rate rises to five percent, and period-two consumption rises to $41,050. We may infer that ________
A) the income effect is stronger than the substitution effect B) the substitution effect is stronger than the income effect C) the substitution and income effects cancel out D) this consumer has a binding borrowing constraint
In order for a central planner to achieve the invisible-hand type efficiency of a free market, the planner would
A. need masses of statistics. B. be required to makes enormous calculations. C. need to be able to measure a consumer’s marginal utility in order to equate MU with MC. D. All of the above would be required.
According to the text, standard economic models, based on self-interest where calculations appear to be made for every decision,
A. describe the motivations of people but fail as useful predictors of behavior. B. are often criticized by other social sciences that use less formal modeling. C. are accurate descriptions of human behavior and the motivations that drive it. D. provide good predictions of behavior even if they don't describe what actually happens.
Discuss national defense, infant industry, and strategic trade as arguments for protection.
What will be an ideal response?