The self-correcting tendency of the economy means that falling inflation eventually eliminates:

To increase the level of output, the Fed should conduct an open market sale

Indicate whether the statement is true or false

An expansionary fiscal policy is likely to

A) decrease a government budget surplus (or increase a budget deficit) and increase borrowing by the Treasury which will sell more bonds. B) increase a government budget surplus (or increase a budget deficit) and decrease borrowing by the Treasury which will buy more bonds. C) increase a government budget surplus (or increase a budget deficit) and increase borrowing by the Treasury which will sell more bonds. D) decrease a government budget surplus (or increase a budget deficit) and decrease borrowing by the Treasury which will buy more bonds.