Deficits that arise from discretionary fiscal policy lead to:
a. increased private demand for money, which is offset by the sale of more government securities
b. decreased private demand for money, which is offset by the sale of more government securities and higher interest rates
c. increases in the number of government securities sold to the public and higher interest rates.
d. decreases in the number of government securities sold to the public and higher interest rates.
e. increases in the public's demand for money and increases in the number of government securities sold to the public, leading to lower interest rates.
c
You might also like to view...
If a supply curve has a constant slope throughout its length, it must have a constant price elasticity throughout its length
a. True b. False Indicate whether the statement is true or false
If currency depreciates:
a. net exports rise and the aggregate demand curve shifts inward b. net exports rise and the aggregate demand curve shifts outward c. net exports fall and the aggregate demand curve shifts inward d. net exports fall and the aggregate demand curve shifts outward
The output losses from an adverse inflation shock are ________ and the output losses from a fall in potential output are ________.
A. large; small B. small; large C. temporary; permanent D. permanent; temporary
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point B to Point A is
A. -2/3. B. -3/4. C. -1.5. D. -20.