If the national debt is growing no faster than GDP,
a. the government will have to raise taxes
b. the nation's standard of living will fall
c. government investment spending will be negative
d. the government can pay interest on the debt without having to raise taxes
e. the government will be unable to pay interest on the debt
D
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If there is a change in the federal funds rate from a target rate due to a decrease in the demand for reserves, the Fed can maintain the target by:
A) causing an upward movement along the supply of reserves curve. B) causing the supply curve of reserves to shift to the left. C) causing a downward movement along the supply of reserves curve. D) causing the supply curve of reserves to shift to the right.
Demand-pull inflation is associated with a(n):
a. decrease in the aggregate supply curve. b. increase in the aggregate supply curve. c. increase in the aggregate demand curve. d. decrease in the aggregate demand curve. e. decline in the availability of a productive resource
Explain what is meant by the time inconsistency of monetary policy
Which of the following will tend to result in the least variation in the expected real rate of return from the ownership of stocks?
What will be an ideal response?