Author Question: In a two-period model with default, if the nation defaults on its debts in the future period A) ... (Read 106 times)

melly21297 · **on:** Jun 30, 2018

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.