Which of the following illustrates a burden of the national debt?
A) Future generations will have to pay lower taxes to finance the national debt.
B) A large debt decreases the amount of capital, thereby decreasing future incomes.
C) The current generation receives a higher level of government services.
D) The current generation pays a higher level of taxes.
B
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Which of the following would increase the U.S. demand for foreign currency?
a. an increase in the U.S. demand for foreign goods b. an increase in incomes abroad c. a decrease in U.S. incomes d. a decrease in the U.S. demand for foreign goods e. an increase in U.S. real interest rates
If perfect competition existed everywhere, along with frictionless exchange, perfect information, and constant returns to scale,
a. consumers would carry out transactions directly with resource suppliers b. firms would not have the information necessary to calculate marginal productivities of resources c. entrepreneurs would be needed to collect information d. consumers would produce output and then engage in barter e. the economy would be organized into one large firm