In the traditional Keynesian model, if the government cuts current taxes
A) the C + I + G + X line will shift down but the aggregate demand curve will not shift.
B) the C + I + G + X line will shift down and the aggregate demand curve will shift to the left.
C) the C + I + G + X line will shift up and the aggregate demand curve will shift to the right.
D) the C + I + G + X line will shift up but the aggregate demand curve will not shift.
C
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Since the mid-1980s, Federal Reserve policies have often been described as attempting
A) accelerated takeoffs. B) sustained growth. C) stalling tactics. D) soft landings.
Given the expected rate of return on all possible investment opportunities in the economy:
A. an increase in the real rate of interest will reduce the level of investment. B. a decrease in the real rate of interest will reduce the level of investment. C. a change in the real interest rate will have no impact on the level of investment. D. an increase in the real interest rate will increase the level of investment.