If the Fed is increasing its holdings of government bonds at the same time the federal deficit is increasing,
a. the Fed and the Treasury are, as usual, coordinating activities.
b. crowding out is more likely to occur.
c. the debt is being monetized.
d. the Fed is attempting to increase interest rates.
c
You might also like to view...
The social arrangements that govern the ownership, use, and disposal of property are referred to as
A) the double coincidence of wants. B) capitalism. C) private enterprise. D) property rights.
The quantity theory of money assumes that
A) the velocity of money is constant. B) the velocity of money is negative. C) the velocity of money fluctuates unpredictably. D) the velocity of money is zero.
Bank capital will decline following an increase in interest rates if the value of its
A) fixed-rate assets is greater than the value of its fixed-rate liabilities. B) fixed-rate assets is less than the value of its fixed-rate liabilities. C) fixed-rate assets is greater than the value of its variable-rate assets. D) fixed-rate liabilities is greater than the value of its variable-rate liabilities.
An economic analysis of the relationship between proposed legislation affecting major employers in each state and the voting patterns of senators and representatives in Congress on that legislation would fit within the subcategory of economics called:
A. the economics of fiscal policy. B. public choice theory. C. behavioral economics. D. monetarism.