Monetary policy designed to counteract a reduction in aggregate demand might include
A. a sharp increase in short-term interest rates.
B. an increase in the money stock.
C. an increase in individual income tax rates.
D. increased government-infrastructure spending.
Answer: B
Economics
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Everything else held constant, an increase in net taxes ________ aggregate ________
A) increases; demand B) decreases; demand C) decreases; supply D) increases; supply
Economics
Suppose the Social Security Administration would like to guarantee the purchasing power of social security payments to the elderly does not diminish
That is, the real value of the payments does not decrease. The CPI in 1990 was 130.7 and the CPI in 1998 was 163.0. How much does the Social Security Administration need to increase payments from 1990 to 1998 to accomplish this objective?
Economics