The Fed affects aggregate demand through monetary policy by changing
A) tax rates on only interest income and so influencing disposable income.
B) government expenditure and so influencing the budget balance.
C) the quantity of reserves and determining government expenditure.
D) tax rates and influencing disposable income.
E) the federal funds rate and the quantity of reserves.
E
You might also like to view...
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
Economists consider the breakfast food industry to be an oligopolistic market
a. True b. False Indicate whether the statement is true or false
The administrative burden of any tax system is part of the inefficiency it creates
a. True b. False Indicate whether the statement is true or false
In terms of framing, we respond better to:
A. positive framing. B. consistent framing. C. neither; research has shown that framing ultimately doesn't matter. D. negative framing.