The burden of the debt is passed on to future generations when the debt is held by
A. U.S. corporations.
B. U.S. households.
C. State and local governments.
D. Foreign households.
Answer: D
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Which of the following statements is true of the unemployment rate in a country?
A) It is not correlated with the level of economic activity in a country. B) It normally decreases during periods of both economic expansion and contraction. C) It normally increases during periods of economic expansion and decreases during periods of economic contraction. D) It normally decreases during periods of economic expansion and increases during periods of economic contraction.
The Second National Bank of Townville has $400,000 in checking deposits, $125,000 in savings deposits, $500,000 in loans, $20,000 in its reserve account at the Fed, and $5,000 of currency in its vault
What is the amount of these assets and liabilities that is in M1?
For Country A, the world price of soybeans exceeds the domestic equilibrium price of soybeans. As a result, international trade allows buyers of soybeans in Country A to experience greater consumer surplus than they otherwise would experience
a. True b. False Indicate whether the statement is true or false
U.S. firms can produce and sell electric fans for $25. The United States can also import electric fans from China at $40 each and from Canada at $45 each. Electric fans made in the United States, China, and Canada are identical. Currently, the United States imposes a 30% tariff on imported electric fans. Now suppose that the United States forms a free-trade area (NAFTA) with Canada and Mexico. From which country will the United States import fans?
a. China b. Canada c. It will import fans from neither China nor Canada. d. It will import fans from both China and Canada.