If government decides to print money to finance a deficit:
A) people who hold money will be penalized as inflation increases.
B) borrowers will be penalized because they will owe more as inflation increases.
C) real GDP will decrease in the long run.
D) the Fed must sell bonds in the open market.
Correct Answer:
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Q218: In the long run, an increase in
Q219: Suppose that the natural rate of unemployment
Q220: The debt is monetized when:
A)the budget is
Q221: Borrowers benefit:
A)when government engages in seignorage.
B)when unexpected
Q222: When an economy has debt deflation:
A)aggregate demand
Q224: The MOST important factors affecting the rate
Q225: A negative output gap implies an unemployment
Q226: A government with a large deficit will
Q227: As a result of a downturn in
Q228: An economy's short-run Phillips curve will shift
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