Which of the following makes it more likely that a country will get caught in a vicious circle of debt financing, higher taxes, and sluggish growth?
a. Politicians like to raise taxes, but they are reluctant to spend on education, health care, and roads.
b. High levels of debt will eventually lead to higher taxes just to pay the interest on the debt, but high taxes will slow economic growth.
c. As outstanding debt increases, politicians will be reluctant to run budget deficits, which will cause the economy to slow.
d. As outstanding debt increases, short-sighted politicians will want to run large budget surpluses in order to pay off the national debt quickly.
B
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A monopolist union that desired to maximize its total wage bill ( ) would offer that quantity of labor for which
a. labor's marginal productivity is zero. b. labor's wage falls to zero. c. the quantity of labor hired is as great as possible given the firm's demand curve. d. the marginal revenue from providing one more worker to the market is zero.
Assume a country experiences heavy capital outflows. What is the first round effect on the value of the domestic currency?
a. The value of the currency rises. b. The value of the currency is unaffected. c. The value of the currency falls. d. The change in the value of the currency is ambiguous.
Free markets allocate (a) the supply of goods to the buyers who value them most highly and (b) the demand for goods to the sellers who can produce them at least cost
a. True b. False Indicate whether the statement is true or false
Professional securities analysts achieve high rate of investment success following a random walk strategy.
Answer the following statement true (T) or false (F)