Which of the following is true regarding the effect of deficits from 1980 to 2005 in the United States?
A. They did not lead to substantial inflation because the Fed did not monetize the deficits.
B. They did not lead to substantial inflation because the Fed did monetize the deficits.
C. They led to substantial inflation because the Fed did not monetize the deficits.
D. They led to substantial inflation because the Fed did monetize the deficits.
Answer: A
You might also like to view...
One goal of rate-of-return regulation is the prevention of
A) free market entry. B) positive economic profits. C) poor quality service. D) environmental degradation.
Suppose you know a piece of land will be worth $1 million (real) in 2025, and the real interest rate is 5%. About how much should you be willing to pay for the land today (20150)? (Assume no taxes)
a. $610,000 b. $1 million c. $1.89 million d. $230.000