If the Fed pursues expansionary monetary policy then
A) the money supply will decrease, interest rates will rise and GDP will fall.
B) the money supply will decrease, interest rates will fall and GDP will fall.
C) the money supply will increase, interest rates will rise and GDP will rise.
D) the money supply will increase, interest rates will fall and GDP will rise.
Answer: D
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When playing a game, a pure strategy refers to
A) a strategy that does not allow any players to cheat. B) the best possible strategy that can be played, given other players' strategies. C) using the same strategy time after time. D) the only possible winning strategy.
During the twentieth century, the largest budget deficits as a percentage of GDP occurred
A) during the 1980s. B) during the Vietnam war. C) during the 1990s. D) during World Wars I and II.