If the U.S.government decided to pay off the national debt by creating money, what would be the most likely effect?
A) A substantial reduction in real GDP
B) A deflationary collapse
C) Rapid inflation
D) An increase in the trade surplus
Correct Answer:
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Q45: If the economy is in a recessionary
Q46: Restrictive fiscal policies
A)pull interest rates down.
B)push interest
Q47: No nation needs default on debts that
Q48: If a larger fraction of GDP is
Q49: The purpose of fiscal policy should be
Q51: Increases in government spending or tax cuts
Q52: Which of the following individuals would be
Q53: Most economists agree that the focus of
Q54: The American national debt is an obligation
Q55: National debt is also known as
A)private debt.
B)public
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