A trade deficit experienced by a country during a year generally signals the poor health of the economy

If the Fed sells government securities to a member of the nonbank public, then the resulting effect on the quantity of money is

A) that there is no change in the quantity of money. B) much larger than if the securities were sold to a bank. C) much smaller than if the securities were sold to a bank. D) the same as if the securities were sold to a bank. E) None of the above answers is correct.

In countries that have experienced hyperinflation, what role have large government budget deficits played in causing the very high inflation rates?

What will be an ideal response?