To pay interest to those U.S. residents who hold government bonds, the government must tax other U.S. residents, implying that the more we redistribute income among residents to cover interest payments, the higher the average tax rate will have to be

An option that gives the owner the right to buy a financial instrument at the exercise price within a specified period of time is a

A) call option. B) put option. C) American option. D) European option.

A decrease in aggregate supply can result in:

a. unemployment. b. demand-pull inflation. c. prosperity. d. cost-push inflation. e. a recession.