In response to a severe recession, the Fed more than doubled the monetary base and pushed short-term interest rates to near zero during 2009-2010 . What happened in 2011?
a. The inflation rate soared to double-digit levels.
b. Aggregate demand increased and the economy recovered rapidly.
c. The large budget deficit of the earlier years was transformed into a budget surplus.
d. The high rate of unemployment continued.
D
You might also like to view...
The following table shows values of annual real GDP per capita over time. Use it to answer the next question.1810$1,5001860$2,1001910$3,9001960$18,0002010$43,600Between which years was the rate of growth in real GDP per capita the highest?
A. 1960 to 2010 B. 1860 to 1910 C. 1810 to 1860 D. 1910 to 1960
One difference between the federal government budget and state and local budgets is that
a. deficits in state and local governments average zero over longer periods of time. b. cyclical deficits are zero for state and local governments. c. state and local governments typically run surpluses. d. both a and b. e. none of the above.
Monetarists
A. argue for the use of discretionary monetary policy. B. contend that government policies have reduced the stability of the economy. C. believe a capitalistic economy is inherently unstable. D. believe the markets in a capitalistic economy are largely noncompetitive.
The largest category of federal spending is for:
A. health care. B. science, space, and technology. C. pensions and income security. D. national defense.