If the Fraction of U

question 14

Multiple Choice

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

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Definitions:

Wage Rate

The amount of money paid to an employee per unit of time, often per hour or year.

Marginal Product

The additional output produced by adding one more unit of a specific input, keeping all other inputs constant.

Perfectly Competitive

A market structure characterized by a large number of sellers and buyers, homogeneous products, and no barriers to entry or exit, leading to the optimal allocation of resources.

Marginal Cost

The additional cost incurred by producing one more unit of a product.