Multiple Choice
If the Fed is increasing its holdings of government bonds at the same time the federal deficit is increasing,
A) the Fed and the Treasury are, as usual, coordinating activities.
B) crowding out is more likely to occur.
C) the debt is being monetized.
D) the Fed is attempting to increase interest rates.
Correct Answer:

Verified
Correct Answer:
Verified
Q151: Crowding out occurs when<br>A)increased taxes force higher
Q152: The structural deficit is determined by established
Q153: Proponents of deficit reduction argue that the
Q154: Between 2009 and 2013,<br>A)both the actual and
Q155: Which of the following statements about the
Q157: If the national debt is owed to
Q158: If a budget deficit increases interest rates,
Q159: U.S.national debt at the end of the
Q160: In the short run, the dominant effect
Q161: In the early 1990s, economists became alarmed