Who pays the interest on government debt for the money it borrows today?
A) future generations of taxpayers
B) the Congressional Budget Office
C) the Federal Reserve
D) The government does not pay interest on money it borrows.
A
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A monopolist faces a demand curve given by P = 20 - Q and has total costs given by TC = Q2. By using a bit of calculus, you should be able to determine that the firm's marginal revenue is MR = 20 - 2Q and its marginal cost is MC = 2Q. Now suppose that the country in which this monopolist is located decides to engage in international trade. The world price of the product produced by the monopolist is $12. The profit-maximizing output level is 6, and the profit-maximizing price equals $12. What are its monopoly profits at this price and quantity?
a. $25 b. $36 c. $50 d. $75
Most observers nowadays see monetary policy as much less important than fiscal policy
a. True b. False Indicate whether the statement is true or false