Which of the following is an important real consequence of the public debt of the United States?
A. It will threaten to bankrupt the Federal government
B. It discourages saving among the general public
C. It decreases the inequality in the distribution of income in the U.S.
D. Its consequent higher interest rates lead to fewer incentives to bear risk and innovate
D. Its consequent higher interest rates lead to fewer incentives to bear risk and innovate
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Assuming a long-run aggregate supply curve, a decrease in taxes results in ________ in output and ________ in price level
A) no change; an increase B) an increase; no change C) a decrease; a decrease D) no change; a decrease
The idea that in the market system, consumers ultimately decide which goods and services firms will produce is known as
A) socialism. B) monopolistic competition. C) consumer sovereignty. D) institutional competition.