What is the official definition of the poverty line? What are some causes of ...

What is the official definition of the poverty line? What are some causes of poverty?

QUESTION 2

Increases in the fraction of national debt held by foreigners _____ the burden of debt service on future generations _____.
 a. decrease; because it is easier for the borrowing nation to default on the debt
 b. decrease; but may make the country more vulnerable to foreign intervention
 c. decrease; because debt servicing accomplished by increases in the money supply is not as inflationary as it would be if all debt were held domestically
  d. increase; because taxes to repay the debt are collected within the country but more interest payments on the debt are sent outside
  e. increase; because foreign bondholding pushes up interest rates at the date of issue, increasing crowding out

QUESTION 3

If the expected inflation rate is 4 percent and the nominal interest rate is 9 percent, the expected real interest rate is _____.
 a. 13 percent
 b. 5 percent
 c. 9 percent
 d. 13 percent
  e. 5 percent

QUESTION 4

Make a case for income inequality.

QUESTION 5

If the fraction of U.S. government securities held by foreigners increases, _____.
 a. current consumption by U.S. citizens can decrease
 b. current consumption by U.S. citizens can increase
 c. current interest payments will increase
 d. private investments will increase
 e. the burden of debt on future generations will decrease

QUESTION 6

During periods when the inflation rate fluctuates widely, _____.
 a. the nominal interest rate and the real interest rate are identical
 b. all money prices rise at the same rate, causing relative prices to increase
 c. suppliers link the selling prices of their goods to the overall inflation rate
 d. uncertainty about changes in relative prices causes a decrease in economic efficiency
  e. all money prices increase at the same rate, leaving relative prices constant