With a large and growing deficit, the Fed may face pressure from the government to
A) keep interest rates low, but the Fed risks inflation by doing so.
B) decrease the inflation tax.
C) increase the quantity of money to prevent inflation.
D) increase the velocity of circulation.
E) decrease the quantity of money to keep the value of money high.
Correct Answer:
Verified
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A)a
A)larger; larger the
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