It is important to distinguish between the privately held portion of the national debt and the portion held by government agencies and the Federal Reserve System because:
a. the government will not have to repay the privately held debt.
b. only the privately held debt creates a net interest liability for the federal government.
c. the privately held debt does not create a net interest liability for the federal government.
d. taxes will have to be raised in order to pay the interest on the debt held by the Federal Reserve system.
b
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Which of the following equals the change in an economy's capital stock from one period to the next?
A) wealth B) stock C) gross investment D) depreciation E) net investment
How is economics used as a policy tool?
What will be an ideal response?
If we include consideration of potential effects of a proposed tax reduction and simplification on the labor supply, we would expect crowding out of investment and net exports brought about by the tax cut to be
A) increased as aggregate real income and output rise in the long run. B) unaffected by the shifting long-run aggregate supply curve. C) dependent upon the impact of this tax change on consumer disposable income. D) less than it would be without the supply-side effects.
All of the following are key features of the federal government's new national health care program EXCEPT
A) people must either purchase health insurance or pay a fine to the federal government. B) a young person in good health can opt not to purchase health insurance without penalty. C) firms with at least 50 employees must either provide health insurance or pay fines when uninsured employees receive tax subsidies to purchase insurance. D) government-directed exchanges will assist in matching individuals and small businesses with health insurance policies that satisfy government requirements.