It May Be Necessary to Cut the Deficit as Part

question 44

Multiple Choice

It may be necessary to cut the deficit as part of a credible anti-inflationary policy because the public knows that large deficits

• A)are inflationary by themselves in the long run.
• B)create inefficiencies.
• C)put pressure on the Fed to expand the money supply to keep interest rates from rising.
• D)put pressure on the Fed to contract the money supply to prevent employment from rising.

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Definitions:

Derivatives

Financial instruments whose value is derived from the value of an underlying asset, such as stocks, bonds, commodities, or currencies.

Group Administered

Refers to tests or assessments given to a group of individuals at the same time, often for efficiency in educational or organizational settings.

Otis-Lennon

A standardized test commonly used to assess verbal, quantitative, and spatial reasoning abilities in children.

WAIS-III

The Wechsler Adult Intelligence Scale, Third Edition, is a test designed to measure human intelligence through various cognitive tasks.