The tax cut of 1964 (proposed by President Kennedy):
a. was the last time fiscal policy was used
b. was the greatest failure as a demand-management tool.
c. actually increased investment, consumption, and employment.
d. shifted the aggregate demand curve leftward.
e. was the first time the focus moved away from managing aggregate demand to focusing exclusively on aggregate supply.
c
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The larger the marginal rate of substitution, the larger is the amount of one good that the consumer is willing to give up in exchange for another good and still remain at the same level of satisfaction
Indicate whether the statement is true or false
If a local government collects taxes of $250,000, has $175,000 of government consumption expenditures, makes transfer payments of $75,000, and has no interest payments or investment, its budget would
A) show a surplus of $100,000. B) show a surplus of $75,000. C) be in balance with neither a surplus nor a deficit. D) show a deficit of $75,000.
In the United States, the dollar was commodity backed by:
A. gold. B. silver. C. oil. D. diamonds.
Which of the following is not a supply-side policy to cure inflation?
A. Incentives to encourage saving. B. Reduced import barriers. C. Lower interest rates. D. Reduced marginal tax rates.