Economists believe that public debt
a. cannot create inflation
b. can create inflation if the government sells bonds to private citizens
c. can create inflation if the government sells bonds to private firms
d. can create inflation if the government sells bonds to the Federal Reserve
e. can create inflation if the government sells bonds to foreigners
D
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If the real interest rate rises,
A) the quantity of loanable funds demanded decreases. B) the demand for loanable funds curve shifts leftward. C) the demand for loanable funds curve shifts rightward. D) the quantity of loanable funds demanded increases. E) there is is movement down along the demand for loanable funds curve.
Why does the production possibility frontier have a negative slope?
What will be an ideal response?
Carlson earns an income of $10,000 per month. Under the federal income tax system, the first $9,000 he earns is taxed at 10% and the remaining income is taxed at 20%. The tax owed by Carlson equals _____
a. $1,100 b. $2,000 c. $1,500 d. $3,000
In 1931 the price of a movie ticket was $0.25 . The consumer price index was 15.2 in 1931, and 210 in 2008 . Using 2008 prices, the real price of a movie in 1931 was
a. $13.82. b. $52.50. c. $1.81. d. $3.45.