Discuss some of the reasons behind downward stickiness of wages and prices.
Question 2
If all U.S. government bonds are held by U.S. citizens, then:
a. the bondholders will not earn interest on the bonds.
b. there is no tax liability for funding the U.S. government's debt.
c. there is no net change in national wealth when the national debt changes.
d. the tax liability for funding the debt is not offset by the interest earnings of bondholders.
e. the tax rates are not increased to repay the outstanding debts.
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