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 Bank of Canada must sell bonds in the open market.
Correct Answer:
Verified
Q202: Borrowers benefit:
A) when government engages in seigniorage.
B)
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Q208: Suppose that an economy's aggregate price level
Q212: As a result of a downturn in
Q232: When inflation is high:
A)people will increase their
Q234: Okun's law finds that output gaps and
Q235: During an inflationary gap:
A)the unemployment rate is
Q236: A negative output gap is associated with
Q237: The long-run Phillips curve shows that:
A)there is
Q238: The short-run Phillips curve:
A)depicts the positive relationship
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