Fiscal policy affects the money market through its impact on income and money demand.
a. true
b. false
Answer: a. true
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A public good is available to all regardless of who pays for it and who does not
a. True b. False
A progressive tax means the percentage of income paid as taxes:
a. increases as income increases. b. decreases as income increases. c. remains the same as income increases. d. none of these.
What can be determined by looking at this production possibilities curve?
a. Studying longer will not improve the grade in economics.
b. It is not possible to get an A in both classes.
c. The highest attainable history grade is a B.
d. It takes less studying to get an A in history than in economics.
If the marginal propensity to save is 0.2 in an economy, a $20 billion rise in investment spending will increase:
A. GDP by $120 billion. B. GDP by $20 billion. C. saving by $25 billion. D. consumption by $80 billion.