When a government increases its budget deficit, then that country's

The quantity demanded for a good

A) must equal the quantity actually sold. B) can be less than the quantity actually sold. C) can be greater than the quantity actually sold. D) is always greater than the quantity actually sold.

Which of the following is a possible cure for ongoing inflation?

a. The Fed could pursue anti-cyclical monetary policy. b. The Fed could increase money supply whenever the AD curve shifts to the right. c. The Fed could maintain a constant interest rate target regardless of economic circumstances. d. The Fed could always try to keep the unemployment rate below the natural rate. e. The Fed could pursue anti-cyclical fiscal policy.