A government can finance its budget deficit by doing all of the following

Jun 23rd, 2016
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Question Question 1 A government can finance its budget deficit by doing all of the following except: buying bonds. borrowing from its central bank. selling bonds. printing money. 2 points Question 2 According to some economists when a country's debt-to-GDP ratio exceeds 90 percent: the interest rate will fall, reducing debt service payments. the government will have to purchase more long-term securities. it will compel citizens to buy more U.S. debt. the government will face financial instability 2 points Question 3 An expansionary monetary policy that affects the price level but not real output must result in the shift of: both the AD and SAS curves. only the AD curve. only the SAS curve. neither the SAS curve nor the AD curve. 2 points Question 4 An unanticipated increase in the inflation rate will most likely: either increase or decrease the real value of the national debt, depending on the effect of inflation on capital gains and losses. increase the real va

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A government can finance its budget deficit by doing all of the followingReport this Question as InappropriateQuestionQuestion 1A government can finance its budget deficit by doing all of the following except:buying bonds.borrowing from its central bank.selling bonds.printing money.2 pointsQuestion 2According to some economists when a country's debt-to-GDP ratio exceeds 90 percent:the interest rate will fall, reducing debt service payments.the government will have to purchase more long-term securities.it will compel citizens to buy more U.S. debt.the government will face financial instability2 pointsQuestion 3An expansionary monetary policy that affects the price level but not real output must result in theshift of:both the AD and SAS curves.only the AD curve.only the SAS curve.neither the SAS curve nor the AD curve.2 pointsQuestion 4An unanticipated increase in the inflation rate will most likely:either increase or decrease the real value of the national debt, depending on the effect of inflationon capital gains and losses.increase the real value of the national debt.transfer wealth from bondholders to the government.have no effect on the real value of the national debt.2 pointsQuestion 5Bank required reserves are:a financial asset for the Fed.a financial liability for the bank.counted as money.a financial liability for the Fed.2 pointsQuestion 6Banks hold people's cash for free, and sometimes even pay for the privilege of holding

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