Either a cut in business taxes or an increase in real interest rates would increase investment and aggregate demand, other things equal
a. True
b. False
Indicate whether the statement is true or false
False
Economics
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Income on the horizontal axis at which the vertical distance to the 45-degree line is greater than the vertical distance to the Ep line gives rise to a ________ amount of unplanned inventory investment, and thus ________ pressure on output
A) positive, upward B) positive, downward C) negative, upward D) negative, downward
Economics
The immediate effect of a member bank's sale of U.S. government securities to the Fed is a(n):
a. increase in that bank's required reserves. b. decrease in that bank's required reserves. c. increase in that bank's excess reserves. d. decrease in that bank's excess reserves. e. decrease in the Fed's assets.
Economics