"Budget deficits are inflationary." The truth of this statement depends on
A) aggregate demand in the economy.
B) the shape of the aggregate supply curve.
C) the size of the national debt.
D) existing debt as a percentage of GDP.
Correct Answer:
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Q154: If the level of government spending increases
Q155: If the Fed is increasing its holdings
Q156: Monetization of the deficit (or debt) means
Q157: If the Fed decides to keep interest
Q158: Figure 32-2 Q160: Figure 32-2 Q161: If the economy is near full employment Q162: If the government ran a major deficit, Q163: Figure 32-3 Q164: "Crowding-out" refers to the process by which Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)high
