Which case represents the largest increase in the real national debt?
a. The price level increases by 500 percent and nominal debt increases by 500 percent.
b. The price level increases by 200 percent and nominal debt increases by 600 percent.
c. The price level decreases by 50 percent and nominal debt increases by 300 percent.
d. The price level increases by 400 percent and nominal debt increases by 200 percent.
e. The price level decreases by 90 percent and nominal debt increases by 200 percent.
C
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If the Fed orders a contractionary monetary policy, describe what will happen to the following variables relative to what would have happened without the policy:
a. The money supply b. Interest rates c. Investment d. Consumption e. Net Exports f. The aggregate demand curve g. Real GDP h. The price level
The existence of marginal social benefits which are not marginal benefits for the industry producing the import substitutes
A) is an argument supporting free trade and non-governmental involvement. B) is an argument supporting the use of an optimum tariff. C) is an argument supporting the use of market failures as a trade-policy strategy. D) is an argument rejecting free trade and supporting governmental involvement. E) is an argument rejecting the domestic market failure concept.