In the short-run framework, budget deficits should:
A) never be run since they slow economic growth over the long run.
B) never be run since they crowd out investment in the short run.
C) be run on a temporary basis whenever the economy is below potential output.
D) be run on a permanent basis since they can always be financed by printing money.
Correct Answer:
Verified
Q1: Evidence shows the United States can continue
Q2: Budget deficits contribute to higher debt.
Q3: Countries with larger debts in terms of
Q4: If Japan's debt level is much higher
Q6: Over the past five years, most countries'
Q7: A budget deficit is defined as:
A)a shortfall
Q8: Deficits may be desirable in the short
Q9: A budget surplus is defined as:
A)a shortfall
Q10: The real deficit is the nominal deficit
Q11: The portion of the budget deficit or
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