Which of the following correctly describes the national debt?
a. The excess of annual federal expenditures over annual federal tax revenues.
b. Annual federal expenditures less annual federal tax revenues plus foreign U.S. bonds purchases.
c. The total amount of money owed by the federal government.
d. None of the above.
c
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General equilibrium occurs in autarky at the point where the community indifference curve intersects the production possibilities frontier
Indicate whether the statement is true or false
A system of barter has substantial transactions costs because
A) taxes under such a system are generally a large fraction of the value of output. B) traders must spend considerable time searching for trading partners. C) the uncertainties of trade result in high legal fees being incurred to draw up binding contracts. D) the uncertainties of trade result in high insurance premiums.