During the course of a bad recession the Fed would probably be doing each of the following, except

While the budget deficit represents a ________, the public debt represents a ________

A) flow; flow B) stock; flow C) flow; stock D) stock; stock

Suppose that when income taxes are reduced by $400 billion, households increase consumption by 80% of the resulting change in disposable income. Suppose also that the multiplier is 2. At a given price level, the aggregate demand curve shifts to the right by

A) $320 billion. B) $400 billion. C) $640 billion. D) $800 billion.