Which of the Following Is True Regarding the Effect of Deficits

question 171

Multiple Choice

Which of the following is true regarding the effect of deficits from 1980-2005 in the U.S.?

• A)They did not lead to substantial inflation because the Fed did not monetize the deficits.
• B)They did not lead to substantial inflation because the Fed did monetize the deficits.
• C)They led to substantial inflation because the Fed did not monetize the deficits.
• D)They led to substantial inflation because the Fed did monetize the deficits.

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Definitions:

Assignable Cause Variation

Variation in a process that is caused by specific, identifiable factors, as opposed to random variation.

Special Cause Variation

Variation in a process that is caused by specific circumstance, which is non-random and can usually be identified and eliminated.

Random Variation

The unpredictability in the outcome of a process, experiment, or measurement due to chance.

Lower Control Limit

The lower control limit is the lowest value on a control chart below which process variability is considered to be out of control.