Question

State whether these statements are true/false:

8. If the US government wants borrow hundreds of billions of dollars by selling hundreds of billions of dollars of US Treasury Bonds to the Federal Reserve Bank (called the “Fed”), then the Fed can create the money needed to buy all of these bonds within seconds.

9. Consistent majority preferences will result from citizens voting, provided the individual preferences of every citizen are themselves consistent.

10. Commanders and the solders in their armies will be favorably affected if they are victorious in expanding the King’s empire.

Answer 1

9. False

Majority preferences will not always consistent from citizens voting, provided the individual preferences of every citizen are themselves consistent. The problem of aggression refers to the fact that in majority system of voting , individual preferences can't always reflect consistent social outcome.
8. False
If the US government wants borrow hundreds of billions of dollars by selling hundreds of billions of dollars of US Treasury Bonds to the Federal Reserve Bank (called the “Fed”), then the Fed can't buy all the bonds. If Fed buys all the treasury bonds, it will badly affect the economy. It can increase money supply in the economy and will leads to inflationary situations in the economy. The process of deficit financing sometimes becomes a long run burden for a country

10. True.

Commanders and the solders in their armies will be favorably affected if they are victorious in expanding the King’s empire. The share of victory can sometimes deliver favourable advantages to everyone. Right from ancient time we can see the positive advantages that the commanders and soilders receive while achieving victory. Just like a good economic policy benefits the entire nation.