One important reason why the U.S. government is not likely to go bankrupt even with a large public debt is that it has:
A. the ability to refinance debt as it comes due by selling new bonds.
B. the ability to decrease interest rates and increase investment spending.
C. s strong military to protect it from creditors.
D. the capacity to pay off its outstanding debt with gold.
Answer: A
You might also like to view...
Due to the subjective nature of the questions that would be needed to determine if someone is underemployed or a discouraged worker, adjusting the unemployment rate to accurately reflect these situations
A) is very easy to do. B) is somewhat difficult. C) is impossible. D) Since so few people are actually underemployed or discouraged workers, adjusting the unemployment rate to reflect these situations is considered an unnecessary waste of time.
The largest asset of the Fed from those on this list is
A) U.S. Treasury securities. B) mortgage-backed securities. C) loans to depository institutions. D) currency outstanding.
Wages under a bilateral monopoly are generally:
A. equal to those under a union monopoly. B. greater than those under a union monopoly but less than those under monopsony. C. greater than those under monopsony but less than those under a union monopoly. D. equal to those under monopsony.
In Figure 5.2, at quantities larger than Q1 demand is:
A. inferior. B. elastic. C. inelastic. D. unit elastic.