Author Question: A likely consequence of debt default is: a. a decrease in the federal cost of borrowing. b. an ... (Read 51 times)

nevelica · **on:** Jun 30, 2018

A likely consequence of debt default is:
a. a decrease in the federal cost of borrowing.
b. an increase in unemployment due to growing uncertainty.
c. a sudden decline in the market interest rates.
d. an increase in the credit flows in an economy.
e. a sudden increase in the investment flows in the economy.

Question 2

The higher the anticipated inflation rate, _____.
a. the more workers will ask for in wages and the more firms will agree to pay
b. the more workers will ask for in wages and the less firms will agree to pay
c. the less workers will ask for in wages and the less firms will agree to pay
d. the higher the real wage increases offered by firms
e. the higher the real wage increases asked for by workers