"Budget Deficits Are Inflationary

question 76

Multiple Choice

"Budget deficits are inflationary." The truth of this statement depends on

• A)aggregate demand in the economy.
• B)the shape of the aggregate supply curve.
• C)the size of the national debt.
• D)existing debt as a percentage of GDP.

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Definitions:

Civil Law

The body of law applicable to lawsuits involving two private parties.

Criminal Law

The body of law setting out public wrongs that the government attempts to correct by prosecuting wrongdoers.

Liable

Responsible by law; to be held legally responsible for an act or omission.

U.S. Constitution

The supreme law of the United States of America, established to frame the government, delineate its powers, and protect the rights of citizens.