Which Statement(s) Is/are TRUE? I

question 95

Multiple Choice

Which statement(s) is/are TRUE? I. People on fixed incomes will not be hurt if the United States monetizes its debt.
II) If the cost of Medicare changes as health care costs increase, it would enhance the government's ability to keep deficits and the national debt under control over the long term.
III) If the United States monetizes its debt, it will result in a weaker dollar if foreigners hold fewer U.S. dollars.

• A) I only
• B) II only
• C) III only
• D) I, II, and III only

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Definitions:

Scarce Goods

Goods that are limited in supply in comparison to their demand, leading to economic decisions regarding their allocation.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded, also known as the market-clearing price.

Demand Curve

A diagram illustrating how the price of a product correlates with the amount of that product buyers are prepared and can afford to buy at different price levels.

Inverse Relationship

A situation in which two variables move in opposite directions, meaning that as one variable increases, the other decreases, and vice versa.