Is the United States in danger of a sovereign default because, like countries in the euro zone, it has high current account deficits and levels of public debt?
What will be an ideal response?
No. The United States has a central bank that can print money as needed to service its debt. It is in no danger of default. Euro zone countries, on the other hand, do not have individual central banks capable of printing money to pay off debt. Instead the European Central Bank and all member countries must collectively agree on monetary policy. Countries that have managed their affairs prudently are understandably unwilling to support the profligate behavior of other countries.
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The socially optimum equilibrium occurs where the private cost curve intersects the demand curve
a. True b. False Indicate whether the statement is true or false
The law of supply implies that
A. Supply curves are downward-sloping to the right. B. Supply curves are flat. C. A change in a determinant of demand shifts the supply curve. D. Supply curves are upward-sloping to the right.