From an initial long-run macroeconomic equilibrium, if the Federal Reserve anticipated that next year aggregate demand would grow significantly faster than long-run aggregate supply, then the Federal Reserve would most likely
A) increase interest rates. B) increase income tax rates.
C) decrease income tax rates. D) decrease interest rates.
A
You might also like to view...
An oligopoly is a market structure in which there are
A) only a few buyers but many sellers. B) only a few sellers selling either an identical or differentiated product. C) many sellers selling a differentiated product. D) a few products sold by many sellers.
"Supporters of import restrictions and protectionist policies place greater weight on producer welfare than on consumer welfare." Comment
What will be an ideal response?
Higher rates of investment spending contribute most to higher levels of
a. political progress. b. consumption spending. c. technological progress. d. government development.
Jane stitched a prom dress which she could have bought for $180 from a store. Which of the following will happen if she keeps the dress for herself?