When the government runs a deficit, it will:
A) buy bonds to finance the deficit.
B) sell bonds to finance the deficit.
C) reduce the money supply to finance the deficit.
D) raise taxes immediately.
Correct Answer:
Verified
Q17: Economists who focus on fiscal austerity focus
Q18: The larger the debt and the inflation
Q19: A government budget deficit occurs when government
Q20: In several years, bondholders may lose confidence
Q21: If an economy operates below potential income,
Q23: A government can finance its budget deficit
Q24: The budget deficit or surplus is:
A)well defined
Q25: Suppose potential income is $60 billion, actual
Q26: A cyclical deficit is the portion of
Q27: The budget deficit or surplus is:
A)easy to
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