The Fed can raise the discount rate when it wants to:
a. decrease the money supply.
b. increase the money supply.
c. decrease the budget deficit.
d. increase the budget deficit.
a
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Which of the following statements is TRUE about the difference between the public debt and the government budget deficit?
A) The public debt is a flow measure and the government budget deficit is not a flow measure. B) There is no relationship between the public debt and the government budget deficit since one is a stock measure and the other is a flow measure. C) The public debt always increases while the government budget deficit may increase or decrease. D) The public debt for this year will increase or decrease depending upon whether there is a government budget deficit or a government budget surplus.
From 1945 to 1995, the debt—GDP ratio in the United States
A) steadily fell. B) steadily increased. C) fell from 1945 until around 1970 and rose thereafter. D) fell from 1945 until around 1980 and rose thereafter.