In Figure 4-10 above, expansionary fiscal policy accommodated by the Fed can be pictured as a movement from points

Economists believe that scarcity forces everyone to

a. satisfy all their wants b. abandon consumer sovereignty c. limit wants d. create unlimited resources e. make choices

If money raised in the issue of new stocks and bonds is used effectively,

a. the income from them is not subject to double taxation. b. a firm need not meet SEC requirements. c. the stock is being "watered." d. they generate the means of repayment.