The idea that a large national debt is "mortgaging the future of our children and grandchildren" is misleading because:
a. it is the Federal Reserve that will be responsible for making interest payments on the debt.
b. future generations will have to bear the opportunity costs of the resources that are used today.
c. future generations will not be liable for the interest obligations of the national debt.
d. future generations will inherit the interest income as well as the interest obligations.
d
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The Keynesian aggregate demand curve slopes downward because for any given money supply, an increase in the price level ______ real money holdings which _____ the interest rate and _____ income
a. increases; lowers; increases b. reduces; raises; reduces c. reduces; lowers; increases d. increases; raises; reduces
In the above figure, if a firm is cleaning up Q4 units of pollution, it is an
A) efficient solution, because marginal social benefits are greater than marginal social costs. B) efficient solution, because marginal social benefits are equal to marginal social costs. C) inefficient solution, because marginal social benefits are greater than marginal social costs. D) inefficient solution, because marginal social costs are greater than marginal social benefits.
Private ownership of a monopoly may benefit society because the monopoly will have an incentive to
a. charge a price that is consistent with that of a benevolent social planner. b. charge a price that prevents some people from buying. c. price its good according to the intersection of marginal cost and average revenue. d. lower its costs to earn a higher profit.
The problems of physical distance can be _____________ by technology which can serve to ___________ trade
A) increased; discourage B) reduced; enhance C) increased; enhance D) reduced; discourage