If the deficit is financed by selling bonds to the ________, the money supply will ________, increasing aggregate demand, and leading to a rise in the price level
A) public; rise
B) public; fall
C) central bank; rise
D) central bank; fall
C
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The funding of public education is
A) a private program. B) a subsidy program. C) done by voluntary contributions. D) provided by Social Security.
If the marginal propensity to consume (MPC) decreases, then
A) the marginal propensity to save (MPS) decreases. B) the multiplier decreases. C) the multiplier increases. D) MPC + MPS is less than 1.
In general, the costs tariffs and quotas impose on consumers are
A) large in total and large per person. B) small in total but relatively large per person. C) large in total but relatively small per person. D) small in total and small per person.
If the demand for a product is price inelastic,
a. producers' revenues will increase if supply increases b. producers' revenues will increase if supply decreases c. a small change in price will cause a large shift in the demand curve d. a large change in price will cause a small shift in the demand curve e. a small change in price will cause a small shift in the demand curve