Prior to the recession which began in late 2007, the Federal Reserve purchased ________ of the government budget deficit

Which of these statements is a fundamental part of Keyneisan economics?

a. the federal government should have a balanced budget every year to protect economic growth b. the government can use of deficit spending to increase aggregate demand pull the economy out the reccession c. the economy will only reach equilibrium and prosperity through the self regulation of the free market

Other things the same, in the open-economy macroeconomic model, if the exchange rate rises,

a. the demand for dollars shifts left. b. the demand for dollars shifts right. c. the quantity of dollars demanded falls. d. the quantity of dollars demanded rises.