If the national debt is owed entirely to U.S. citizens,
A. paying off the debt will necessarily stimulate growth.
B. future interest payments on the debt are not a burden to the nation as a whole.
C. future economic growth will necessarily be slowed.
D. the debt constitutes a burden to these citizens.
Answer: B
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If the price of a good rises, then moving along a demand curve the percentage change in the quantity demanded will be
A) positive. B) negative. C) zero. D) either positive, negative, or zero depending on how the demand curve shifted. E) undefined.
An increase in the money supply will lead to an increase in equilibrium real GDP only if:
a. the aggregate demand curve is horizontal. b. the aggregate supply curve is vertical. c. the investment function is horizontal. d. the aggregate supply curve is not vertical. e. the investment function is upward-sloping.