To lower long-term interest rates, in 2010 the Fed started its new open market operation program to purchase

Which one of the following statements about deflation is false?

a. Deflation is good for lenders. b. Deflation is bad for borrowers. c. Deflation boosts people's real incomes. d. Deflation raises the burden of carrying debt. e. During the last half of the 20th century, the U.S. economy has experienced deflation for more years than it experienced inflation.

If citizens of a country are not saving much, it is better to

a. force citizens to save. b. reduce investment. c. have foreigners invest in the domestic economy than no one at all. d. prevent opportunities for citizens to buy capital assets abroad.