If the government undertakes expansionary fiscal policy, it:
A. could increase income taxes.
B. expects aggregate demand to increase.
C. expects aggregate demand to decrease.
D. should force people to change their spending patterns.
B. expects aggregate demand to increase.
Economics
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If the Fed wishes to increase the money supply it can
A) increase reserve requirements. B) sell securities to banks and/or the public. C) increase the rediscount rate. D) None of the above is correct.
Economics
A prediction based on rational expectations ________
A) relies solely on past experience B) will always be superior to one based on adaptive expectations C) is based on real, rather than nominal variables D) will not always be accurate
Economics