If the Fed decides to keep interest rates low when there is a large budget deficit, economists conclude that the Fed is

a. monetizing the debt.
b. neutralizing the effects of the deficit.
c. correcting the deficit for inflation.
d. resisting the effects of the deficit.

a

Economics

You might also like to view...

Consider the game known as the Prisoner's Dilemma. What's the dilemma?

a. By both not confessing, both get to the cooperative solution and minimize time in prison. b. By both confessing, both get to the noncooperative solution and both serve significant time in prison. c. As a group, they are better off cooperating by not confessing, but each player has an incentive to be first to confess in a double cross. d. The problem is that the spies should never have been caught; they should move to Rio.

Economics

Which of the following is true about a nation’s production possibilities curve?

a. a point inside the curve is a combination of products that is currently impossible to produce. b. a point outside the curve is a combination of products that is below capacity. c. a rightward shift of the curve illustrates economic growth. d. full employment is illustrated by a point inside the curve.

Economics