Implicit liabilities of a government are A bonds held by foreigners B spending

Implicit liabilities of a government are a bonds held

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34.Implicit liabilities of a government are:A)bonds held by foreigners.B)spending promises, like Social Security benefits, that are effectively debt although no bond is associated with the promise.C)debt of a country adjusted for the price ratio.D)the ratio of a country's debt to its GDP.Page 9
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Use the following to answer questions 35-36:Figure: Fiscal Policy Options35.(Figure: Fiscal Policy Options) If the aggregate demand curve is AD, which of these choices is the most appropriate discretionary fiscal policy?36.(Figure: Fiscal Policy Options) If the aggregate demand curve is ADuni02BA, which of these choices is the most appropriate discretionary fiscal policy?37.Suppose the economy is operating at an output level of $4,000 billion. Assume furthermore that potential output is $5,000 billion and the marginal propensity to consume is 0.75. Which of the following would be required to close this recessionary gap?Page 10
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38.Suppose the economy is operating at an output level of $5,400 billion. Assume furthermore that potential output is $5,000. Which of the following would be necessary to close this inflationary gap if the marginal propensity to consume is 0.75?A)raise taxes by $400 billionB)increase spending by $400 billionC)Decrease spending by $100 billionD)increase spending by $100 billion39.Money is:40.The functions of money are:
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