Multiple Choice
If the economy suffers a recession for reasons unrelated to fiscal policy, the deficit should rise and
A) inflation should fall.
B) interest rates should fall.
C) real GDP should fall.
D) All of the above are correct.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q7: In actual practice, does the Fed monetize
Q12: The Fed and the government are working
Q23: Explain why the portion of the national
Q84: Give some arguments for and against a
Q97: The Federal Reserve may choose to monetize
Q162: Why do economists think that the structural
Q189: Why does the government not have to
Q199: Define the following terms and explain their
Q201: Appropriate fiscal policy depends on the other
Q205: If the President and Congress agree to