The federal government _______ securities (treasury bonds, notes, and bills) to cover its budget deficits.
a. buys
b. sells
c. trades
d. creates
b. sells
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Which of the following would likely result in a shift of the aggregate demand curve to the right?
A) a rise in the real interest rate B) a decrease in the quantity of money in circulation C) a decrease in job security D) a tax cut
What is a government's budget constraint in the long run as opposed to a given time period?
What will be an ideal response?
The horizontal summation of the demands of each consumer at different price levels is called:
A. speculative demand. B. the market demand curve. C. the price elasticity of market demand. D. consumer surplus.
In the price system
A. prices are set by the interaction of supply and demand. B. consumers alone set the price. C. producers alone set the price. D. prices are set by government action.