Multiple Choice
In Japan the ratio of government debt to real GDP is 220%,while in Greece it is 143%.Despite this,Greece is viewed as on an unsustainable course,while Japan is not.What could explain this?
A) The political system is more corrupt in Japan.
B) Legislators are more efficient in Japan than in Greece at issuing new debt.
C) The prospects for economic growth in Japan are much better than in Greece.
D) The real interest rate is much higher in Japan than in Greece.
E) Japan's proximity to China.
Correct Answer:
Verified
Correct Answer:
Verified
Q25: A key channel for interest rate effects
Q26: The simplest device to analyze dynamic decisions
Q27: The government's current period budget constraint is:<br>A)
Q28: In the case where current and future
Q29: An increase in second-period income results in<br>A)
Q31: A good proxy for the flow of
Q32: A key variable in intertemporal choice is<br>A)
Q33: Distorting taxes can invalidate Ricardian equivalence because<br>A)
Q34: The endowment point is the consumption bundle
Q35: In the two-period model of the economy,<br>A)