Why might the Fed decide to monetize the deficit?
a. to keep inflation low
b. to reduce the structural deficit
c. to reduce the budget deficit
d. to keep interest rates low
d
Economics
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Explain what scatter diagrams show and why we use them
What will be an ideal response?
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If inflationary expectations are based on all available information, they are referred to as
A) optimal. B) rational. C) adaptive. D) informed.
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The opportunity cost of postponing income to some future time depends on the interest rate
a. True b. False Indicate whether the statement is true or false
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Given the following information, aggregate income equals:Profits$700Rent$400Compensation to employees$2,500Interest$300Taxes$1,000Transfer payments$500
A. $3,400. B. $3,900. C. $2,900. D. $4,400.
Economics