Multiple Choice
What is a benefit of giving the government freedom to run a deficit?
A) It allows the government to be flexible if something unexpected happens.
B) Government spending does not cause inflation.
C) Discretionary spending quickly responds to changes in the economy.
D) The government has precise information on how much spending needs to increase to restore potential output.
Correct Answer:
Verified
Correct Answer:
Verified
Q25: The graph shown displays various economic outcomes.
Q26: If interest rates increase, the debt becomes:<br>A)
Q27: Economists express the budget deficit:<br>A) as a
Q28: A direct cost of public debt is:<br>A)
Q29: When an economy is in an economic
Q31: Which of the following is not a
Q32: Payments from government accounts to individuals for
Q33: When an economy is in a recession,
Q34: All else equal, Ricardian equivalence predicts:<br>A) a
Q35: The graph shown displays various economic outcomes.