In 1990-1991, the government budget deficit ________ mainly due to the ________
A) rose, recession's effect on tax collection
B) rose, expenditures of the Persian Gulf War
C) fell, recession's effect on government expenditures
D) fell, economic stimulus provided by the Persian Gulf War
A
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Global warming refers to the effect of global pollutants such as carbon dioxide on climates on the earth. Climate-induced changes in temperatures affect, among other things, agriculture
Which of the following is a reason why policymakers are still debating if this problem should be addressed and how it should be addressed? A) There is much disagreement about all aspects of the problem: how much carbon emissions contribute to damage from climate change which in turn determines the benefits from reduction, and what methods to use which in turn determines the cost of reduction. B) Scientists agree about the damage caused by carbon emissions but disagree about the methods of reducing emissions. C) The marginal cost of reducing carbon emissions is known with certainly but the marginal benefit from reduction is not known with certainty. D) The marginal cost of reducing carbon emissions is not known with certainly but the marginal benefit from reduction is known with certainty.
Suppose the one-year nominal interest rate is 2.0% in the United States and 5.0% in Canada. Should you hold Canadian bonds or U.S. bonds? Explain
What will be an ideal response?