Which of the following statements about government borrowing is not true?
A. It provides the government the ability to maintain spending levels during economic downturns
B. "Crowding out" of private investments is a major opportunity cost of government borrowing
C. Its opportunity cost is likely to be quite high during an economic downturn
D. A bigger budget deficit will result in a bigger amount of government borrowing
C. Its opportunity cost is likely to be quite high during an economic downturn
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The payment of a dividend by a foreign company to an American stockholder represents
A) a debit in the U.S. capital account. B) a credit in the U.S. current account. C) a credit in the U.S. official reserve account. D) a debit in the U.S. current account.
The study of an individual's choice about what type of computer to buy is a subject of
A) macroeconomics. B) microeconomics. C) an aggregate concept. D) not a concern for economic analysis.