One important reason why the United States government is not likely to go bankrupt even with a large public debt is that it has:
A. The power to print money to finance the debt
B. A strong military to protect it from creditors
C. The capacity to pay off its outstanding debt with gold
D. The ability to decrease interest rates and increase investment spending
A. The power to print money to finance the debt
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Use the following table to answer the next question.OutputTotal Cost0$10120228338453573698The total fixed cost of production is
A. $20. B. $0. C. $10. D. $98.
The basic reason that a competitive unregulated market produces an inefficient amount of a good with an external cost is because
A) producers cannot measure marginal social cost. B) producers do not pay the external cost. C) the general public does not care about external costs. D) external costs are not a political issue. E) the external cost is paid by consumers rather than producers.
An increase in government spending will force an appreciation of the dollar, which causes net exports to fall
Indicate whether the statement is true or false
If an economy produces 4,000 units of output with a price level of $2 and with a velocity of money of 8, we know that the money supply must be:
A. $8,000. B. $4,000. C. $1,000. D. $2,000.