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.
B
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Suppose you are offered a new smartphone in exchange for thirty hours of your work in your friend's garden. This is an example of
A) money as a standard of deferred payment. B) barter. C) money as a medium of exchange. D) money as a store of value.
Which of the following is an example of an autonomous spending change?
A) An increase in investment caused by a technological innovation B) An increase in consumption caused by an increase in interest income C) An increase in tax revenue caused by a rise in GDP D) An increase in saving caused by a rise in income