The Fed pledged to continue QE3 until:

A baseball player who has signed a long-term contract with his club and then constantly says he is injured and cannot play is an example of ________

A) the principal-agent problem B) marginal returns to work C) the law of diminishing returns D) inefficient hiring practices

Using economic efficiency as the standard, most economic models imply that ________ when trying to reduce the debt

A) increasing taxes is preferable to reducing government expenditure B) reducing government expenditure is preferable to increasing taxes C) increasing taxes is equally efficient as reducing government expenditure D) reducing government expenditure is no more effective than increasing taxes