In the Two-Period Model with Default

question 65

Multiple Choice

In the two-period model with default,

• A) there is no default in equilibrium.
• B) there is never default in the future period.
• C) there is always default.
• D) the government commits to never default.
• E) private sector economic agents can default, but the nation never defaults as a whole.

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Definitions:

Valsalva Manoeuvre

Forceful exhalation against a closed glottis, which increases intrathoracic pressure and, thus, interferes with venous blood return to the heart.

Body Alignment

The proper positioning and arrangement of body parts to maintain posture and prevent injury.

Contractures

The permanent and painful tightening of muscles, tendons, ligaments, or skin that prevents normal movement of the associated body part.

Flexor Muscles

Muscles that decrease the angle between the bones of a joint, thus performing a bending movement, usually found in the limbs.