In a two-period model with default, if the nation defaults on its ...

[melly21297]

In a two-period model with default, if the nation defaults on its debts in the future period
 
  A) there are no consequences.
  B) it bears a cost v.
  C) collateral is seized.
  D) it faces a higher interest rate.

Question 2

In the endogenous growth model, workers divide their time between market work and
 
  A) accumulating physical capital.
  B) accumulating human capital.
  C) trying to invent new production processes.
  D) work at home.

[anyusername12131]

Answer to Question 1

B

Answer to Question 2

B

[melly21297]

Thanks for the timely response, appreciate it

[Zebsrer]

YES! Correct, THANKS for helping me on my review