Refer to the above graph. What combination would most likely cause a shift from AD 1 to AD 2?
An increase in taxes and no change in government spending
A decrease in taxes and a decrease in government spending
A decrease in taxes and an increase in government spending
An increase in taxes and an increase in government spending
A decrease in taxes and a decrease in government spending
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A bond is
A) a legal claim to a part of a corporation's future profits that includes voting rights. B) a legal claim to a part of a corporation's future profits that does not include voting rights. C) a legal claim against a firm, providing a fixed annual coupon payment and a lump-sum payment at maturity. D) a nonlegal promise to provide an annual payment to the holder when the corporation makes profits.
If people have a positive rate of time preference, they
a. must be rewarded for saving b. are willing to pay more for a good that saves them money if they hold on to it a long time c. prefer to consume in the future when things are cheaper d. prefer time deposits to savings accounts e. prefer leisure over labor
Which of the following categories accounted for the largest percentage of total federal government expenditures in recent years?
a. Income security. b. National defense. c. Education and health. d. Interest on the national debt.
In 1981, the Reagan administration employed a policy that included tax ____ while at the same time the Federal Reserve's strategy was to combat ____
a. cuts; unemployment b. cuts; inflation c. hikes; unemployment d. hikes; inflation