Will a large quantity of bonds held in the Social Security Trust Fund make it easier to deal with the retirement of the baby boomers?
a. Yes; the federal government will be able to redeem these bonds in the future without raising taxes or increasing its borrowing.
b. Yes; the interest on these bonds will provide the federal government with a stream of net revenue in the future.
c. Yes, but only if the federal government holds these bonds until they mature.
d. No; the federal government cannot redeem the bonds without raising revenues for their redemption from other sources.
D
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If the actual capital stock exceeds the desired capital stock due to a cycle of overbuilding, then
A) net investment will fall dramatically. B) net investment will increase dramatically. C) net investment will not change. D) the effect on net investment is unknown.
A decrease in the price of a good would
a. increase the demand for the good. b. increase the quantity demanded for the good. c. decrease the demand for the good. d. decrease the quantity supplied of the good.