There is a trade-off between having prices that the government believes are too low and having a chronic excess supply

If an increase in the federal deficit stimulates an economy, _____

a. an expansionary gap exists in the economy b. the crowding in of private investment takes place c. the crowding out of private investment offsets crowding in of private investment d. the crowding out and crowding in of private investment cancels each other out e. interest rates increase significantly

"Equilibrium" is a situation in which there are no inherent forces to produce change

a. True b. False Indicate whether the statement is true or false