If the U.S. economy is producing at a level that is substantially less than potential GDP and the government’s budget deficits are increasing aggregate demand, then ____________________________ is not much of a danger.
A. a tight monetary policy
B. an inflationary increase in the price level
C. international financial investment
D. the central bank’s contractionary monetary policy
Answer:B
If the U.S. economy is producing at a level that is substantially less than potential GDP and the government’s budget deficits are increasing aggregate demand, then ____________________________ is not much of a danger.
A. a tight monetary policy B. an inflationary increase in the price level C. international financial investment D. the central bank’s contractionary monetary policy
Explanation: Type: Multiple Choice