The expansionary effect on the economy that results from a government budget def

Question

The expansionary effect on the economy that results from a government budget deficit is known as a fiscal stimulus.
True
False


Fiscal policy deals with
a. interest rates
b. the money supply
c. the government budget
d. bank credit


By the late 1960s, record investment levels, high levels of consumption, and large government outlays generated inflationary pressures in the U.S. economy.
True
False


During an inflationary period, the Fed is inclined to purchase government securities to combat inflation.
True
False


In the past few decades, the United States has not experienced any extended periods of
a. demand-pull inflation
b. cost-push inflation
c. stagflation
d. deflation

Explanation / Answer

True b. the money supply False True c. stagflation

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