If the federal government is running a budget deficit,
a. the national debt will decline.
b. it will have to either raise taxes or reduce expenditures next year.
c. the U.S. Treasury will finance the deficit by issuing additional bonds.
d. the supply of money will increase and the general level of prices will rise.
C
You might also like to view...
The marginal propensity to consume is the ratio of a change in consumption to a change in income
Indicate whether the statement is true or false
Which of the following statements concerning the First Bank of the United States is not true?
a. Its goal was to prevent state-chartered banks from overissuing bank notes. b. Its charter lasted 20 years. c. It was the first version of a central bank in the United States. d. It served as the government's fiscal agent. e. It was the first bank chartered in the United States.