Monetarists blame rising government deficits for rising inflation
A) because deficits shift aggregate demand to the right.
B) so long as the aggregate supply curve is vertical.
C) when financing these deficits involves money creation.
D) because the deficits increase the demand for money and thus interest rates.
C
Economics
You might also like to view...
If the population of a country increases, while GDP remaining constant, then ________
A) income per capita will remain unchanged B) trade deficit will decrease C) gross national product will increase D) income per capita will decrease
Economics
If the Fed sells U.S. government securities to banks, the federal funds rate ________ and banks' reserves ________
A) falls; increase B) rises; increase C) falls; decrease D) rises; do not change E) rises; decrease
Economics