A deficit resulting from the use of discretionary fiscal policy
A) increases interest rates
B) decreases interest rates
C) increases interest rates if the effect of the decrease in the demand for money is greater than the effect of the increase in the supply of government securities
D) increases interest rates if the effect of the decrease in the demand for money is less than the effect of the increase in the supply of government securities
E) increases interest rates if the effect of the increase in the demand for money is greater than the effect of the decrease in the supply of government securities
Correct Answer:
Verified
Q109: When there are large federal budget deficits,the
Q110: The crowding in of private investment is
Q111: Discretionary expansionary fiscal policy may lead to
A)all
Q112: Discretionary policy deficits are associated with
A)higher interest
Q113: Crowding out refers to the government's increased
Q115: Crowding out occurs by
A)causing reduced government purchases
Q116: Which of the following is not a
Q117: All of the following are possible implications
Q118: If government deficits stimulate the economy,
A)there is
Q134: Crowding out occurs because lower interest rates
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