Which of the following is an example of automatic fiscal policy?
A) The government deliberately raises taxes.
B) The government deliberately lowers taxes.
C) The government deliberately increases spending.
D) The government deliberately decreases spending.
E) none of the above
E
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A market is initially in a long-run equilibrium and there is a permanent increase in demand. After the new long-run equilibrium is reached, there
A) are more firms in the market. B) are fewer firms in the market. C) are the same number of firms in the market. D) probably is a different number of firms in the market, but more information is needed to determine if the number of firms rises, falls, or perhaps does not change. E) is no change in the market.
An increase in demand deposits would ____ M1 and ____ M2. a. increase; increase
b. not change; increase. c. decrease; decrease. d. not change; decrease.