If the Fed fears a recession, it
A) decreases aggregate supply.
B) buys government securities.
C) sells government securities.
D) decreases the quantity of money.
E) decreases aggregate demand.
B
Economics
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An example of fiscal policy is
A) a reduction in government spending. B) an increase in autonomous spending by consumers. C) a reduction in investment spending by the private sector. D) an increase in Social Security spending by the elderly.
Economics
Some politicians have recently suggested changing the income tax system in the U.S. to a flat tax system where all taxpayers would pay the same percentage of their income in tax to the federal government
Explain how such a change can be analyzed in terms of efficiency. Do you believe that this tax will have equity effects as well?
Economics