Suppose the government want to increase aggregate demand without increasing interest rates. You would recommend
a. reducing transfer payments and increasing the money supply.
b. increasing government spending and reducing the money supply.
c. increasing taxes and the money supply.
d. increasing government spending and the money supply.
D
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Refer to Scenario 14-2. As a result of Kristy's deposit, Bank A's required reserves increase by
A) $2,000. B) $8,000. C) $10,000. D) $50,000.
The Federal Reserve looks at the threshold of capital utilization rates as an indicator of inflationary pressures
Indicate whether the statement is true or false
Goods produced in the U.S. are made more competitively priced when
a. the dollar appreciates. b. the dollar depreciates. c. the exchange rate is fixed. d. the money supply is decreased.
The purpose of fiscal policy should be to
A. balance the budget to be fiscally responsible. B. balance aggregate supply and aggregate demand. C. keep taxes low to keep voters happy. D. minimize government spending to avoid wasting money.