The government deficit does NOT place a burden on future generations when
A) taxes are eventually raised to pay interest on the additional debt.
B) the borrowed funds are used for productive government investment.
C) borrowing from foreigners offsets the deficit, so that private investment is not crowded-out.
D) the borrowed funds are transferred to the purchase of nondurable consumer goods.
B
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In the 1970s, U.S. consumers transferred their deposits from accounts in banks and thrifts to money market mutual funds because money market mutual funds: a. were more liquid
b. were less risky. c. paid higher interest rates. d. were guaranteed for a larger amount. e. were more liquid and paid higher interest rates.
Suppose a market has the demand function Qd=20-0.5P. Using the midpoint method, what is the price elasticity of demand between $30 and $40?