When the Fed conducts open market operations, what type of bonds does the Fed purchase?
a. Newly issued bonds from the treasury
b. Bonds newly issued by companies
c. Previously issued bonds from the treasury
d. Bonds previously issued by companies
e. Newly issued bonds from other countries
C
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If nominal GDP is $5 trillion and real GDP is $4 trillion, the GDP deflator is
A) 12.5. B) 80. C) 125. D) 800.
Economists believe that public debt
a. always promotes overconsumption b. promotes overconsumption if people view the government's liabilities as their own c. promotes overconsumption if people fail to view the government's liabilities as their own d. cannot promote overconsumption e. promotes underconsumption if people view the government's liabilities as their own
An increase in aggregate demand will reduce the unemployment rate only if the ensuing inflation is anticipated
a. True b. False Indicate whether the statement is true or false