In order to ________, a government must increase spending and decrease taxation.
A. increase aggregate demand
B. decrease aggregate demand
C. increase aggregate supply
D. decrease aggregate supply
Answer: A
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Which of the following is an example of a fiscal policy?
a. Raising the discount rate b. Reducing the reserve requirement c. Reducing government spending d. Pegging the currency
Suppose at the prevailing interest rate of 4 percent the money supply and the quantity of money demanded are both $2 trillion. At a 5 percent interest rate, the quantity of money demanded is $1.5 trillion, while at a 3 percent interest rate it is $2.5 trillion. If the Fed conducts an open-market purchase of $50 billion, and if the money multiplier is 10, then at what interest rate will the money
supply equal the quantity of money demanded? a. An interest rate of 5 percent and a quantity of $1.5 trillion. b. An interest rate of 4 percent and a quantity of $2 trillion. c. An interest rate of 3 percent and a quantity of $2.5 trillion. d. An interest rate of 4 percent and a quantity of $2.5 trillion.
What is owner's equity?
a. What a company owes b. What is left after the liabilities are satisfied c. What a company owns d. None of these
Which of the following statements is correct?
A) Demand pull inflation is caused by an increase in demand and an increase in supply. B) Cost push inflation is the result of rising input costs pushing the aggregate demand curve to the left. C) Demand pull inflation is caused by an increase in demand and an increase in the quantity supplied. D) None of the above.