Multiple Choice
Tax cuts stimulate ______ by improving workers' incentive and expand ______ by raising households' disposable income.
A) velocity; demand for loanable funds
B) demand for loanable funds; velocity
C) aggregate demand; aggregate supply
D) aggregate supply; aggregate demand
Correct Answer:
Verified
Correct Answer:
Verified
Q83: In the Keynesian-cross model, a decrease in
Q84: Assume that the money demand function is
Q85: Assume that a government raises its own
Q86: a. Suppose Congress decides to reduce the
Q87: A decrease in the nominal money supply,
Q89: During a recession, consumers may want to
Q90: Consider the impact of an increase in
Q91: Changes in fiscal policy shift the:<br>A) LM
Q92: An IS curve shows combinations of:<br>A) taxes
Q93: Consider the impact of an increase in