Multiple Choice
Fiscal policy refers to the idea that changes in:
A) the Reserve Bank of Australia with its money supply mechanisms can affect aggregate demand
B) government purchases and taxing policy can affect aggregate demand
C) the price level affects the equilibrium interest rate
D) the exchange rate affects net exports
Correct Answer:
Verified
Correct Answer:
Verified
Q29: An increase in money demand will raise
Q30: The quantity of money demanded is _
Q31: The multipler > 1 represents a less
Q32: The aggregate supply curve is _ in
Q33: Monetary policy affects the aggregate demand via
Q35: According to _, net taxes _ during
Q36: Personal income tax revenue and transfer payments
Q37: If MPC = 0.9, then the government-purchases
Q38: Which of the following cannot stabilise a
Q39: Suppose the government reduces taxes by $200