If the economy is experiencing unemployment, then the most appropriate government policy would be to:
a. shift the aggregate demand curve by using a tax increase coupled with spending cuts.
b. shift the aggregate demand curve by using a tax increase coupled with more spending.
c. shift the aggregate demand curve by using a tax cut coupled with spending cuts.
d. shift the aggregate demand curve by using a tax cut coupled with more spending.
e. shift the aggregate supply curve by using a tax cut coupled with spending cuts.
d
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The M1 money supply
a. is composed of assets that reflect the medium of exchange function of money. b. is larger than the M2 money supply. c. includes credit card balances since they are used to purchase things. d. is composed of only currency.
Which of the following statements is true regarding expansionary fiscal policy?
A) It leads to an increase in the supply of bonds by the Treasury. B) It leads to a fall in interest rates. C) It leads to an increase in net exports. D) It tends to reduce to size of government.
Give an example of something that is scarce in your life and explain the choices you've made because of scarcity.
What will be an ideal response?
Which of the following people would most likely benefit if the U.S. dollar is stronger than other currencies?