The central bank is said to monetize the deficit when it purchases bonds issued by the government.
Answer the following statement true (T) or false (F)
True
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The figure above shows the market for annual influenza immunizations the United States
If the government intervenes in the market and provides a subsidy to providers of immunizations to immunize the efficient number of people, the amount of the subsidy is ________ per person. A) $25 B) $50 C) $35 D) $15 E) $40
Monopolies may earn economic losses in the long run
a. True b. False Indicate whether the statement is true or false
When the price level falls
a. households want to lend more, so the interest rate rises making the quantity of goods and services demanded rise. b. households want to lend more, so the interest rate falls, making the quantity of goods and services demanded rise. c. households want to lend more, so the interest rate rises, making the quantity of goods and services demanded fall. d. None of the above are correct.
From uncovered interest parity, we know that when the domestic interest rate is greater than the foreign one:
a. the domestic currency is expected to appreciate. b. the domestic currency is expected to depreciate. c. the foreign currency is expected to appreciate. d. the foreign currency is expected to depreciate.