Ongoing government budget deficits complicate the Fed's monetary policy because ________. The Fed's monetary policy complicates Congress's deficit cutting because if the Fed ________.
Fill in the blank(s) with the appropriate word(s).
the deficit puts pressure on interest rates to rise, which makes it harder for the Fed to conduct monetary policy; raised interest rates, rising debt payments would make it harder for the government to cut the deficit
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A price-discriminating monopoly charges
A) the same price to every buyer for the same product. B) a different price to different types of buyers for the same product, even though there are no differences in costs. C) a different price to different buyers, because the costs are different. D) different prices to buyers for different products. E) each customer a price that equals the marginal cost of serving that customer.
If the supply curve illustrates the quantities producers plan to sell at given prices, and the demand curve illustrates the quantities consumers plan to buy at given prices, then the plans of producers and consumers are fully coordinated at the point
where A) the supply curve lies above the demand curve. B) the supply curve intersects the demand curve. C) the demand curve lies above the supply curve. D) the amount of a good needed by consumers exactly equals the amount supplied by producers.
The concept of exogeneity is important because
A) it clarifies whether or not the variable is determined inside or outside your model. B) maximum likelihood estimation is no longer valid. C) under strict exogeneity, OLS may not be efficient as an estimator of dynamic causal effects. D) endogenous variables are not stationary, but exogenous variables are.
When the current account is in deficit, the capital account must
A. be balanced. B. be zero. C. not add to the deficit. D. have an equal and offsetting surplus.