How serious is the national debt to our economic stability?
The debt is a significant issue but not as troubling as some in the media make it out to be. The debt is owed to the citizens of the United States and it is the obligation of the government to them. Contrary to public hype, typically foreigners own 30 percent. The real problem with government engaged in deficit spending, which builds debt, is the upward pressure on interest rates and the crowding out of consumer and business borrowing.
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An increase in a perfectly competitive firm's demand for labor could be caused by
A) an increase in the supply of labor. B) a decrease in the market price of the product the firm produces. C) an increase in the amount of human capital among the labor force. D) a decrease in the market wage rate.
The earnings that a corporation saves for investment in other productive activities are
A) capital gains. B) tax incidence. C) transfers in kind. D) retained earnings.