If the national debt is owned by domestic citizens:
a. the debt will not have to be repaid.
b. future interest payments transfer funds from one group of Americans to another.
c. the debt will have to be repaid first to domestic creditors, then to foreign creditors.
d. future interest payments will go to pay foreign debt first, then debt owed to American citizens.
b
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Suppose the overall MPC is 0.75 and the marginal propensity to import is 0.25. A $4 billion increase in U.S. exports will lead to a ________ increase in GDP
A) $6 billion B) $8 billion C) $12 billion D) $16 billion
Public goods are characterized by the free-rider problem because
A) no one can be excluded from the benefits of public goods once they are produced. B) public goods are usually things that people really do not want to consume. C) public goods are characterized by the principle of rival consumption. D) public goods can easily be subdivided into small units.