Because Monetary Stimulus Overwhelmed Fiscal Contraction in the United States

question 105

Multiple Choice

Because monetary stimulus overwhelmed fiscal contraction in the United States during the 1992-2000 period,

• A)real GDP grew.
• B)real GDP decreased.
• C)the rate of inflation increased.
• D)the budget deficit increased.

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Definitions:

Economically Beneficial

Activities or decisions that result in a net gain in economic value, improving the economic welfare of individuals or society as a whole.

Larger Output

Refers to the increased production of goods or services by a company or economy.

Fixed Amounts

Predetermined quantities or sums that do not change over time or in response to varying conditions.

Trade by Bartering

A method of exchanging goods or services directly without using money.