Suppose that the government wants to increase income without changing the interest rate. How can they accomplish this?
a. Increase government spending and reduce the money supply.
b. Increase government spending and the money supply.
c. Increase taxes and the money supply.
d. Reduce government spending and increase the money supply.
B
Economics
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In the short run, a perfectly competitive firm NEVER
A) earns an economic profit. B) incurs a loss greater than its total fixed costs. C) produces where MR = MC. D) earns a normal profit.
Economics
The expectations-augmented Phillips curve implies that as expected inflation increases, nominal wages ________ to prevent real wages from ________
A) fall; rising B) fall; falling C) rise; falling D) rise; rising
Economics