Question #62

The fact that the US dollar is the strongest international currency and is in high demand by international investors (including foreign governments) means that the US Government

• has no greater capacity to engage in fiscal expansion than any other sovereign government.
• has a greater capacity to engage in fiscal expansion because there are more sources of funding available.
• has to balance the inflationary pressures from pumping dollars into the economy with the political need to reduce unemployment.

Answer #632

Answer: has no greater capacity to engage in fiscal expansion than any other sovereign government.

Explanation

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