An open market ________ by the Fed decreases interest rates and ________ investment
A) sale; decreases B) purchase; decreases
C) purchase; increases D) sale; increases
C
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Social Security tax is deducted from your paycheck. In the figure above, this will be shown as
A) taxes flowing from households to firms. B) taxes flowing from households to governments. C) wages flowing from firms to governments. D) wages flowing from firms to households. E) taxes flowing from firms to governments.
Government transfer payments like social security and unemployment benefits are
A) included in government purchases. B) not included in government purchases. C) not included in government purchases, but they are included in the consumption component of GNP. D) not included in government purchases, but they are part of the investment component of GNP. E) included in government purchases but not in the GNP.