If the Fed decides to keep interest rates low when there is a large budget deficit, economists conclude that the Fed is
A. monetizing the debt.
B. neutralizing the effects of the deficit.
C. correcting the deficit for inflation.
D. resisting the effects of the deficit.
Answer: A
You might also like to view...
As long as the marginal revenue curve lies above the horizontal axis,
a. total revenue must exceed total cost b. the total revenue curve must have a positive slope c. marginal revenue must exceed marginal cost d. profit must be rising e. the firm must be earning a profit
The rate of inflation is measured as the percentage change between _________ levels or index numbers over time.
a. price b. cost c. production d. import
An index fund
a. holds only stocks and bonds that are indexed to inflation. b. holds all the stocks in a given stock index. c. guarantees a return that follows the index of leading economic indicators. d. typically has a lower return than a managed fund.
If a country went from a government budget deficit to a surplus, national saving would
a. increase, shifting the supply of loanable funds right. b. increase, shifting the supply of loanable funds left. c. decrease, shifting the demand for loanable funds right. d. decrease, shifting the demand for loanable funds left.