In actual practice, does the Fed monetize the debt?
A. No, it did not do so even with large deficits in the 1980s and early 2000s.
B. No longer, although it monetized much of the deficit in the 1980s.
C. Yes, although it monetizes less now than in the 1980s.
D. Yes, it has monetized the deficit steadily since the early 1970s.
Answer: A
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Which of the following defines economics? Economics is the social science that studies ___________
A. the best way of eliminating scarcity B. the choices made to cope with scarcity, how incentives influence those choices, and how the choices are coordinated C. how money is created and used D. the inevitable conflict between self-interest and the social interest
The fraction of each added dollar of income that is used for consumption is called the:
a. average propensity to consumer (APC). b. autonomous consumption rate (ACR). c. marginal consumption propensity (MCP). d. marginal propensity to consume (MPC).