The government can meet its interest bill without having to levy taxes if it issues more bonds and if the
A) economy's real growth rate of output is greater than the real interest rate.
B) economy's real growth rate of output is equal to the nominal interest rate.
C) economy's real growth rate of output equals or exceeds its real interest rate.
D) economy's nominal growth rate of output equals or exceeds its real interest rate.
C
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The income elasticity of demand is largest for
A) food. B) clothing. C) shelter. D) luxuries.
When an economy grows out of a recession, normally the demand for bonds ________ and the supply of bonds ________, everything else held constant
A) increases; increases B) increases; decreases C) decreases; decreases D) decreases; increases
What is the least accurate description of movements in real wages between 1800-1860?
a. U.S. wages grew relative to those of England. b. The wages of females increased relative to those of males. c. The wages of skilled laborers increased faster than those of unskilled laborers. d. The U.S. became more unequal in terms of income.
A small change in the rate of productivity growth will have: a. a small impact on output in both the short run and the long run
b. a large impact on output in both the short run and the long run. c. a small impact on output in the short run but a large impact in the long run. d. a large impact on output in the short run but a small impact in the long run. e. no effect on output at all.