Multiple Choice
If the economy is near full employment and Congress cuts taxes, the proper monetary policy should be
A) expansionary to keep the economy fully employed.
B) expansionary to counteract the increased deficit.
C) contractionary to shift the aggregate demand curve outward.
D) contractionary to counteract the effects of fiscal policy.
Correct Answer:
Verified
Correct Answer:
Verified
Q98: A budget deficit will be least inflationary
Q99: Budget deficits are inflationary when<br>A)the Federal Reserve
Q100: A serious burden of a budget deficit
Q101: The structural deficit/surplus budget<br>A)measures the federal budget
Q102: National debt is the federal government's total
Q104: Because the personal income tax is an
Q105: No nation needs default on debts that
Q106: Future generations will be hurt by a
Q107: When will the difference between the actual
Q108: "Crowding-out" refers to the process by which<br>A)high