The structural deficit can be used to estimate the thrust of current fiscal poli

Question

The structural deficit can be used to estimate the thrust of current fiscal policy. True False During the real estate boom of the early 2000s, some banks operated with leverage ratios in excess of 30 to 1. True False The federal Reserve has policy instruments that it can aim directly at a specific category of asset price bubble. True False The short-run effects of government's financial rescue program and fiscal stimulus package helped the economy increase aggregate demand curing the Great Recession. True False Expansionary monetary policy will decrease interest rates and decrease the velocity of money. True False The equation of exchange states that the money value of GDP must be equal to the product of The money stock times its velocity. True False

Explanation / Answer

10.

False

there is also importance of cyclical debt induced spending deficit in the current scanrio

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