31. The central proposition of Modern Monetary Theory is that:

The Federal Reserve should sell Treasury bonds when the government runs a budget deficit

The Federal Funds Rate and the reserve ratio should be increased during recessions

The federal government should print money to fund necessary increase in spending

Increases in GDP lead to lower prices and interest rates

32. According to Federal Reserve Policy, the Fed is unlikely to raise interest rates because:

the federal budget deficit is expected to decline in future years

the U.S. has a substantial surplus in its balance of trade

businesses are concerned that a decline in the value of the dollar will lead to increases in imports

they are concerned about low inflation and avoiding further recession