It is important to distinguish between the privately held portion of the national debt and the portion held by government agencies and the Federal Reserve System because:
a. the government will not have to repay the privately held debt.
b. only the privately held debt creates a net interest liability for the federal government.
c. the privately held debt does not create a net interest liability for the federal government.
d. taxes will have to be raised in order to pay the interest on the debt held by the Federal Reserve system.
b
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The proposed monetary rule that would specify how the Fed should respond to changes in GDP and inflation rates is called the:
A. Keynesian rule. B. Friedman rule. C. Taylor rule. D. Lucas rule.
Which of the following is characteristic of a labor market that is a monopsony?
A. The type of labor available is relatively mobile from one industry to another B. The supply curve for labor lies above the marginal resource cost curve of the firm C. The wage rate the firm must pay varies directly with the number of workers it employs D. The firm's employment is a small portion of the total employment of that type of labor