An increase in consumer pessimism will lead to increased inflation in

The United States' comparative advantage over Japan in the production of rock-n-roll music implies that (for a similar quality of music) the

A) opportunity cost of production is less in Japan. B) absolute cost of production is less in the United States. C) absolute cost of production is less in Japan. D) opportunity cost of production is less in the United States. E) None of the above.

Answer the following statements true (T) or false (F)

1. A budget deficit is another name for the public debt. 2. If the government runs a smaller budget deficit, then the public debt will decrease. 3. Only politicians, not the voters, are to blame for the problem of chronic budget deficits that many nations face. 4. Voters' preference for having government programs serve them is inherently in conflict with their preference to pay no taxes. 5. Monetary and fiscal policies are tools that the government can use to try to stabilize the economy.