One way fiscal policy affects aggregate demand is:

A. directly through tariffs.
B. directly through government spending.
C. directly through taxation.
D. All of these are true.


Answer: B

Economics

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The money market is in equilibrium

A) at any point on the IS curve. B) at any point on the LM curve. C) at only one point on the LM curve. D) only at the intersection of the IS and LM curves.

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A market is perfectly competitive even if firms have the ability to set their own price as long as the price difference reflects differences in the product

Indicate whether the statement is true or false

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If the fractional reserve system were to cease to exist, the banking system would be able to create money

Indicate whether the statement is true or false

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When disposable income is 2000, C is


A. 2000.
B. 2200.
C. 2400.
D. 2600.

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