Since the U.S. government can continue to issue new Treasury bonds, bills, and notes as old ones mature, we do not necessarily have to worry about suddenly have to pay back all of the national debt.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 2An increase in the equilibrium price of Japanese yen per dollar could be caused by a(n):
a. increase in the general level of prices in Japan.
b. increase in the U.S. demand for domestically-built automobiles.
c. decrease in the U.S. income relative to the income in Japan.
d. increase in the supply of dollars on the foreign market.
QUESTION 3In the Keynesian model, investment spending is an autonomous expenditure.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 4The national debt as a percentage of GDP has remained roughly constant since the end of World War II.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5An increase in the real rate of interest that can be earned on U.S. investments above the rate that can be earned on investments in India would:
a. increase the price of the dollar in Indian rupees.
b. increase the supply of dollars by those holding U.S. dollars.
c. decrease the equilibrium exchange rate of Indian rupees per dollar.
d. all of these.
QUESTION 6The vertical intercept of the consumption function is used to determine the break-even level of real disposable income.
a. True
b. False
Indicate whether the statement is true or false
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