A contractionary fiscal policy is likely to
A) increase government borrowing, thereby shifting the supply curve for bonds to the right.
B) reduce government borrowing, thereby shifting the supply curve for bonds to the left.
C) increase government borrowing, thereby shifting the demand curve for bonds to the right.
D) reduce government borrowing, thereby shifting the demand curve for bonds to the left.
Ans: B) reduce government borrowing, thereby shifting the supply curve for bonds to the left.
You might also like to view...
Refer to the figure above. What is the consumer surplus in the market?
A) $60 B) $90 C) $120 D) $160
Your father tells you he earned $3.00 per hour when he was 16 in 1977; you remember making $6.00 per hour when you were 16 in 1999 . Given that the CPI was 36.7 in 1977 and 166.1 in 1999, which of the following is the 1999 real equivalent of your father's hourly earnings when he was 16?
a. $4.48 b. $6.78 c. $13.58 d. $15.01
A survey of professional economists revealed that more than three-fourths of them agreed with a number of statements, including which of the following?
a. Tariffs and import quotas usually reduce general economic welfare. b. A large federal budget deficit has an adverse effect on the economy. c. Minimum wage increases unemployment among young and unskilled workers. d. All of the above are correct.
Diversification
a. increases the likely fluctuation in a portfolio's return, but reduces market risk. b. increases the likely fluctuation in a portfolio's return, but reduces firm-specific risk.. c. reduces the likely fluctuation in a portfolio's return and reduces market risk. d. reduces the likely fluctuation in a portfolio's return and reduces firm-specific risk.