Other things equal, contractionary fiscal policy will lead to:
a. an increased budget deficit (assuming an initial budget deficit).
b. a reduced budget surplus (assuming an initial budget surplus).
c. an expanded budget surplus (assuming an initial budget surplus).
d. increased government purchases.
c
Economics
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Suppose the Fed purchases Treasury securities. Interest rates in the United States will ________ and the U.S. dollar will ________ against foreign currencies
A) decrease; appreciate B) increase; depreciate C) decrease; depreciate D) increase; appreciate
Economics
An increase in national income could by caused by which of the following?
A) an increase in gross domestic product B) a decrease in personal income C) an increase in depreciation D) an increase in personal taxes
Economics