Multiple Choice
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.
Correct Answer:
Verified
Correct Answer:
Verified
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