A decrease in government expenditures serves as an example of an adverse supply shock

A monopoly ________

A. can choose its price and output and always has the option of price discriminating B. is a price taker and by offering a range of discounts can price discri-minate C. that produces a good that cannot be resold might choose to price dis-criminate D. book store that offers a discount on Tuesdays is price discriminating

A major reason that the public debt cannot bankrupt the Federal government is because:

A. The public debt is mostly held by foreigners B. The Federal government has the Social Security Trust Fund C. The public debt can be easily refinanced by issuing new bonds D. The Federal government can draw on its gold reserves