If the Fed attempts to reach and maintain very low rates of unemployment, we would expect the rate of inflation to rise
Indicate whether the statement is true or false
TRUE
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If no foreign residents owned any of the U.S. public debt, then it would be true that
A) U.S. residents would essentially owe the public debt to themselves. B) there would be no distributional consequences associates with he public debt. C) there would be no interest payments on the public debt. D) the public debt would naturally disappear over time.
A sales tax on sellers of a good shifts the demand curve leftward because the tax raises the price that consumers must pay
Indicate whether the statement is true or false
If the interest rate falls, the present value of $100 to be received in one year
A) rises. B) falls. C) is unaffected. D) might rise, fall, or not change.
If the government enacts contractionary fiscal policy, it could:
A. reduce its spending. B. decrease personal income taxes. C. decrease corporate income taxes. D. All of these are contractionary.