The government, concerned about the wealth redistribution problem caused by the inequality of debt holdings, intervenes by
a. making a special effort to sell bonds to corporations
b. creating a proportional income tax system
c. sometimes instructing commercial banks to divest some of their bond holdings
d. prohibiting the sale of bonds to the Federal Reserve
e. limiting the purchase of bonds by foreigners
C
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As John's income has increased, he has purchased fewer hamburgers. Hamburgers are
A) a normal good for John. B) an inferior good for John. C) not following the law of demand. D) leading to a rightward shift in John's demand curve for hamburgers.
Hot dogs and hamburgers might be considered ________ goods compared to steak.
A. complementary B. normal C. inferior D. substitutable
The aggregate supply/aggregate demand model is used to help understand all of the following except
A) inflation. B) business cycle fluctuations. C) the aggregate value of stock traded in the stock market. D) growth of potential GDP.
One problem of ISI was
A) the failure to consider that government officials may make inefficient decisions. B) the overemphasis on improvements in the rural rather than the urban sector. C) the oversupply of complex technical goods. D) the undervaluation of currencies to promote export growth.