The government can safely take on more debt
a. as long as private firms are taking on more debt
b. as long as the debt involves no interest payments
c. if GDP is growing faster than the debt is growing
d. if the interest rate is below 3 percent
e. as long as the debt is growing by less than 3 percent per year
C
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When one firm sells a good or service that has no close substitutes and a barrier blocks the entry of new firms, what type of market is this?
A) perfect competition B) only monopoly C) oligopoly D) only monopolistic competition E) either monopoly or monopolistic competition
Economic growth is enhanced by
A) free international trade. B) limiting international trade so that the domestic economy can prosper. C) discouraging saving, because increased saving means less spending. D) ignoring incentive systems. E) increasing welfare payments to the poor so they can afford to buy goods.
Money spent on the purchase of a new house is included in the GDP as a part of:
a. Personal saving b. Investment c. Personal consumption expenditures d. The consumption of private fixed capital
In the early 1990s, European unemployment rose largely because of
A) reductions in stock prices. B) undervalued currencies. C) overvalued currencies. D) high inflation. E) none of the above