(Last Word) Which of the following is a concern about the consequences of ZIRP, QE, and Operation Twist?
A. Increased government borrowing to fund deficit spending.
B. Increased taxes to pay for the monetary stimulus.
C. The stimulus to aggregate demand would be too sudden and result in runaway inflation.
D. The weakening of the U.S. dollar would worsen the U.S. trade balance.
A. Increased government borrowing to fund deficit spending.
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Consumer spending ________ and investment spending ________
A) follows a smooth trend; is the most stable component of aggregate expenditure B) is very volatile and subject to fluctuations; follows a smooth trend C) follows a smooth trend; is more volatile and subject to fluctuations D) is very erratic; is also erratic, but less erratic than consumer spending
Social Security began as a "pay-as-you-go" system, meaning that payments to current retirees were paid
A) from taxes collected from current workers. B) as the government collected revenues from tariffs and excise taxes in the years Social Security payments were made. C) as long as the government had funds available. D) from taxes collected from retired workers.
Severance taxes are collected on _____
a. estates b. unemployment insurance c. the extraction of natural resources d. large employee bonuses
According to the graph shown, if this economy were to open to trade, domestic prices would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. remain $14 for domestically produced goods, and be $10 for those units imported.
B. drop to $10 for all units.
C. remain $14, with more units sold overall.
D. increase to $17 for all units sold.