In 2009, President Obama and Congress stimulated aggregate demand by
A. increasing taxes and government spending.
B. decreasing taxes and government spending.
C. increasing taxes and decreasing government spending.
D. decreasing taxes and increasing government spending.
Answer: D
You might also like to view...
You borrow money to buy a house in 2009 at a fixed interest rate of 5.5 percent. By 2012, the inflation rate has steadily fallen to 1.5 percent from the recent high of 3.0 percent in 2009
Considering only your mortgage, is inflation good news or bad news for you? A) bad news, because it makes the nominal value of your mortgage payments increase B) bad news, because it makes the real value of your mortgage payments increase C) good news, because it makes the real value of your mortgage payments decrease D) bad news, because inflation hurts everyone
Suppose the price of coffee is $3, the price of a bagel is $2 and a person's budget is $40. The budget line's equation is
A) $2/Qbagel + $3/Qcoffee = $40. B) $2(Qbagel) + $3(Qcoffee) = $40. C) Qbagel /$2 + Qcoffee /$3 = $40. D) Qbagel + Qcoffee = $40/($3 + $2).
According to the simple Keynesian model, when planned expenditure exceeds income
a. prices rise. b. unplanned inventory investment is negative. c. income falls. d. planned expenditure falls. e. both b and d.
Oligopolists may charge a price lower than the profit maximizing price to discourage new firms from entering a market
a. True b. False Indicate whether the statement is true or false