Refer to Figure 16-4. In the graph above, suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by Congress and the president?
A) an increase in the marginal income tax rate B) an increase in interest rates
C) an increase in transfer payments D) an open market purchase of Treasury bills
A
You might also like to view...
If real GDP increases over time, the cost of living will
A) always remain constant. B) always decrease. C) always increase. D) either remain constant or increase. E) More information is needed to determine how the cost of living changes.
Gross domestic product does not measure
A) the sum of the value added by producers at each stage of the production process. B) the total income received by producers for the services they supply. C) the total purchases of newly-produced final goods. D) the total welfare of the noninstitutional population.
Importing a foreign good increases the __________ the foreign currency and increases the __________ the currency of the importing country in the foreign exchange market
A) demand for; demand for B) demand for; supply of C) supply of; demand for D) supply of; supply of
Which of the following is the lowest rating given to an investment-grade bond by Moody's?
A) Aa B) A C) Baa D) B