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Moderate Deficit Put Quiz

Although the U.S. has a well-developed government bond market and has experienced relatively small budget deficits relative to GDP, deficits can be inflationary if

Moderate deficits, such as those experienced by the United States in the last decade, present an inflationary problem if

If moderate deficits put _____ pressure on interest rates, the Fed may _____ bonds, leading to an increase in high-powered money.

If moderate deficits put upward pressure on interest rates, the Fed may _____ bonds, leading to a ______ in high-powered money.

If the Fed pursues a policy goal of

Proponents of Ricardian Equivalence reject the view that deficits

According to economists who believe in Ricardian Equivalence, when the government runs a deficit and issues bonds,

An examination of the inflationary episode in the United States from 1960 through 1980 reveals that

An examination of the inflationary episode in the United States from 1960 through 1980 indicates that

An examination of the inflationary episode in the United States from 1960 through 1980 indicates that

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