Author Question: The opportunity cost of deficit spending is likely to be low: a. only when it creates new physical ... (Read 11 times)

jilianpiloj · **on:** Jun 30, 2018

The opportunity cost of deficit spending is likely to be low:
a. only when it creates new physical capital.
b. only when it creates new human capital.
c. only when it improves existing physical capital.
d. only when it improves existing human capital.
e. when it creates or improves physical or human capital.

Question 2

A worker would be hurt least by inflation when the:
a. worker anticipates inflation and increases savings at the bank.
b. worker is protected by a cost-of-living adjustment clause in an employment contract.
c. the price level increases but at a decreasing rate.
d. worker is protected by fixed annual increases in wages and benefits in an employment contract.
e. government increases the level of social security retirement benefits to correct for the effects of unanticipated inflation.