Suppose you are the president of a large bank. In which situation would you be most reluctant to loan money to a country?
a. Its nominal debt is $10 trillion.
b. Its nominal debt is 1 percent of nominal GDP.
c. Its nominal deficit is $150 billion.
d. Its real deficit is 100 percent of real GDP.
e. Its real debt is 1 percent of real GDP.
D
You might also like to view...
Suppose the nation of Alphonia was charged with dumping electric lawnmowers in the nation of Omegalon. The result of Omegalon imposing anti-dumping tariffs on electric lawnmowers manufactured in Alphonia would most likely be
A) lower selling prices on electric lawnmowers in Alphonia. B) higher selling prices on electric lawnmowers in Omegalon. C) increased exports of electric lawnmowers from Alphonia. D) an increased market share for Alphonian-manufactured electric lawnmowers in Omegalon.
The aggregate supply curve slopes
a. downward because firms can sell more at lower prices. b. downward because firms can hire more workers at lower prices. c. upward because firms want to hire more workers at higher wage levels. d. upward because firms can hire labor at fixed wages for short-run periods.
In order for barter trades to occur, there must be a
a. singularity of interests. b. bargaining intermediary. c. double coincidence of wants. d. sufficient supply of cash.
Which of the following curves reflects the idea that in the long run, output is determined only by the factors of production and given technology?
A. the aggregate demand curve B. the market supply curve C. the long-run aggregate supply curve D. the Keynesian aggregate supply curve