Which of the following attributes of fiscal policy will most likely be stressed by a proponent of supply-side economics?
a. the impact of budget deficits on interest rates and aggregate demand
b. the impact of government spending on aggregate demand, output, and employment
c. the impact of marginal tax rates on the supply and productivity of resources
d. the impact of budget deficits on the rate of taxation in the future
C
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When a U.S. company makes a $200,000 donation to the International Red Cross to help the victims of an earthquake in India, the transaction is recorded in the
A) current account. B) one-way donations account. C) international help account. D) capital and financial account. E) official settlements account.
The multiplier means that an increase in investment results in ________ aggregate expenditure that is ________ the increase in investment
A) increased; the same size as B) increased; smaller than C) decreased; larger than D) decreased; smaller than E) increased; larger than
If businesses become very pessimistic and reduce spending, which of the following is the most likely in the short run?
a. An increase in output, an increase in money demand and an increase in the interest rate. b. A decrease in output, an increase in money demand and an increase in the interest rate. c. A decrease in output, a decrease in money demand and a decrease in the interest rate. d. An increase in output, a decrease in money demand and a decrease in the interest rate. e. A decrease in output, a decrease in money demand and an increase in the interest rate.
Personal consumption accounted for $12.3 billion in 2015 in the United States.
Answer the following statement true (T) or false (F)