Tax cuts on business income increase aggregate demand by increasing
A) wage rates. B) government spending.
C) consumption spending. D) business investment spending.
D
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The U.S. central bank is the government institution that:
A) monitors financial institutions, controls the money supply, and invests in foreign assets. B) monitors financial institutions, controls the money supply, and sets certain key interest rates. C) monitors financial institutions, controls the money supply, sets certain key interest rates, and decides on political targets. D) controls the money supply and invests in foreign assets.
There are apartments in Chicago whose rooftops overlook Wrigley Field where the Chicago Cubs play at home. On game day you can find free riders on the roof enjoying _____________
a. a near public good b. free property rights c. a positive externality d. a pure public good e. excess utility