The telephone is an example of a product with network externalities

Indicate whether the statement is true or false

True . The more people use phones the more people benefit from owning one.

Economics

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The key idea of the real business theory is that potential output itself will remain stable over time

Indicate whether the statement is true or false

Economics

Which of the following is a reason why we should consider the federal national debt a problem?

A) If the debt was incurred to finance research and development, crowding out will occur. B) If the debt drives up interest rates, crowding out will occur. C) The federal government is in danger of defaulting on its debt. D) If the debt was incurred to finance improvements in infrastructure, crowding out will occur.

Economics