When there are credit-market imperfections, an increase in government debt may be advantageous because it
A) discourages credit-constrained consumers from borrowing too much.
B) allows credit-constrained consumers to consume more.
C) eliminates the problems that cause credit-market imperfections.
D) encourages more private saving.
B
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Purchasing goods produced in another country is the most common reason to
A. running a trade surplus. B. exporting to one country. C. investing in one country. D. exchange one currency for another.
Refer to the above figure. If the farmer is growing 8,000 bushels of beans and 8,000 bushels of wheat, then we know that
A) the farmer is not using resources efficiently. B) the farmer is using more land for wheat than for beans. C) the farmer should increase the amount of wheat grown and reduce the amount of beans. D) the farmer cannot be using the amount of land that was used to construct the curve.