Which of the following cases represent the smallest increase in the real national debt?
a. The price level increases by 200 percent and the nominal debt increases by 200 percent.
b. The price level increases by 200 percent and the nominal debt increases by 100 percent.
c. The price level increases by 200 percent and the nominal debt increases by 500 percent.
d. The price level increases by 100 percent and the nominal debt increases by 300 percent.
e. None of the above
B
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A change in the price level brings a ________ the aggregate supply curve, NOT a ________ the aggregate supply curve
A) vertical displacement of; change in the slope of B) change in the slope of; horizontal displacement of C) shift in; change in the slope of D) movement along; shift in E) shift in; movement along
According to supply-side fiscal policy, reducing tax rates on wages and profits will:
a. create demand-pull inflation. b. lower the price level but may trigger a recession. c. result in stagflation. d. reduce both unemployment and inflation.