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Author Question: If the Fed buys U.S. Treasury bills and bonds to finance deficits, this means that the government is ... (Read 127 times)

RYAN BANYAN

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Question 1

The way the U.S. government borrows money to finance deficits is by


◦ selling shares of stock in the government.
◦ the U.S. Treasury selling bills and bonds.
◦ purchasing foreign assets.
◦ lowering interest rates.

Question 2

If the Fed buys U.S. Treasury bills and bonds to finance deficits, this means that the government is financing the deficit by printing money, which will eventually lead to


◦ excess aggregate supply.
◦ excess aggregate demand.
◦ deflation.
◦ an appreciation of the dollar.


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Marked as best answer by RYAN BANYAN on Apr 19, 2019

hugthug12

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RYAN BANYAN

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Reply 2 on: Apr 19, 2019
Thanks for the timely response, appreciate it


mohan

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Reply 3 on: Yesterday
Excellent

 

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