A tax increase ________ disposable income, ________ consumption expenditure, and shifts the IS curve to the ________, everything else held constant

________ in the money supply creates excess ________ money, causing interest rates to ________, everything else held constant

A) A decrease; demand for; rise B) An increase; demand for; fall C) An increase; supply of; rise D) A decrease; supply of; fall

In reality, decisions made by firms may not always produce maximum total profit because some executives

A. are more motivated by altruism. B. are more interested in market share than profits. C. may push research and development to the point that profits decline. D. All of the responses are correct.