The government borrows by selling bonds. The DEBT
What will be an ideal response?
DEBT is the sum of all yearly deficits (note that states must balance their yearly budgets; they are not allowed to accrue debt like the federal government)
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Assume mortgages and houses are complements in consumption; if the price of mortgages decreases (decreases in interest rates), we would expect to see
a. An increase in demand for houses b. An decrease in demand for houses c. An increase in the quantity of houses demanded d. An decrease in the quantity of houses demanded
In the aggregate demand-aggregate supply model in the short run, an increase in the money supply will lead to a(n): a. increase in both the price level and real GDP
b. decrease in both the price level and real GDP. c. increase in real GDP and a decrease in the price level. d. decrease in real GDP and an increase in the price level. e. increase in the price level only.