Solved

If the Economy Is in an Inflationary Gap, Which of the Following

Question 147

Multiple Choice

If the economy is in an inflationary gap, which of the following is the least appropriate policy mix?


A) a budget surplus and expansionary monetary policy 
B) a budget deficit and expansionary monetary policy 
C) a budget deficit and contractionary monetary policy 
D) a budget surplus and contractionary monetary policy

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q142: When (if at all) are budget deficits

Q142: The argument that budget deficits are inflationary

Q144: Analysis indicates that the economy is in

Q145: Figure 16-2
Figure 16-2 </p></div><svg width=

Q148: The Federal Reserve may choose to monetize

Q149: Figure 16-2
Figure 16-2 </p></div><svg width=

Q150: In actual practice, does the Fed monetize

Q151: If the aggregate supply curve has its

Q153: The decisions on the part of the

Q157: If the Fed decides to keep interest

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents