Author Question: Deficits that arise from discretionary fiscal policy lead to: a. increased private demand for ... (Read 86 times)

asmith134 · **on:** Jun 30, 2018

Deficits that arise from discretionary fiscal policy lead to:
a. increased private demand for money, which is offset by the sale of more government securities.
b. decreased private demand for money, which is offset by the sale of more government securities and higher interest rates
c. increases in the number of government securities sold to the public and higher interest rates.
d. decreases in the number of government securities sold to the public and higher interest rates.
e. increases in the public's demand for money and increases in the number of government securities sold to the public, leading to lower interest rates.

Question 2

Which of the following will most likely qualify for unemployment compensation benefits?
a. A new college graduate who cannot find work despite a desperate job search
b. An unemployed coal miner who has been receiving benefits for the past six months
c. A former retail clerk who quit her job because the boss was too demanding
d. A spot welder who has just gotten his first pink slip in the mail after ten years of continuous employment
e. An accountant who was fired from his last position for drinking alcohol on the job