Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 9CQ
To determine
Identify the relevance of the statement.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
What's wrong with this way of thinking? "When the government runs a budget deficit, it simply pays its bills by printing more money. As the newly printed money works its way through the economy, it waters down the value of paper money already in circulation. Thus, it takes more money to buy things. Budget deficits are the major cause of inflation."
Syria’s economic situation is getting worse. Price levels are increasing significantly as the flow of supplies remain low. How can the level of inflation be controlled in a situation like this?
a.
Increase aggregate demand by expansionary fiscal policy
b.
Increase money supply by decreasing bank reserve requirements
c.
Increase tax collections to limit aggregate demand
d.
Increase aggregate supply through importation of necessary goods
One of the fiscal measures of dealing with inflation is:
a.
Implement a budget surplus
b.
Operate a budget deficit
c.
Increase the rate of interest
d.
Operate a balance budget
Chapter 13 Solutions
Economics: Private and Public Choice (MindTap Course List)
Knowledge Booster
Similar questions
- Due to Corona Virus epidemic in Bangladesh, Government tax collection has declined, but government’s expenditure did not, creating budget deficit. What are the ways government can finance the budget deficit? Do you think financing budget deficit will create inflation? Explain in detailsarrow_forwardThe government is printing a lot of money due to the economic stimulus bills. Will this cause worrying levels of inflation?arrow_forwardWhat do you mean by inflation? What are the causes of inflation?arrow_forward
- how the government somewhat address the issue of inflation? explain.arrow_forwardWhat can be a reason why inflation is not occuring when government spending increases in an economy?arrow_forwardCountry Y is experiencing severe and unanticipated inflation. Identify one fiscal policy action that could be implemented to reduce inflation. Identify an open-market operation that could be implemented to reduce inflation.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
- Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co