A simultaneous reduction in both taxes and the money stock will always
a. increase interest rates.
b. lower income and raise the interest rate.
c. lower income and raise the interest rate.
d. increase income.
e. raise income and raise the interest rate.
A
Economics
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Suppose a country decreases government purchases by $400 billion. Suppose the government spending multiplier is 1.5 and the economy's real GDP is $8,000 billion. This contractionary policy action shifts the aggregate demand curve to the left by
A) $12,000 billion. B) $600 billion. C) $533.3 billion. D) $266.6 billion.
Economics
A country has output of $600 billion, consumption of $350 billion, government expenditures of $90 billion and investment of $60 billion. What is its supply of loanable funds?
a. $160 billion b. $150 billion c. $60 billion d. $30 billion
Economics