Critics of the supply-side tax cuts proposed by the Reagan administration argued that lower taxes would:
a. increase the budget deficit.
b. decrease money supply in the economy.
c. reduce the aggregate price level.
d. reduce the disposable income of households.
e. reduce the volume of international trade.
a
Economics
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If the U.S. exchange rate rises, the price to foreigners of U.S.-produced goods and services ________ and the quantity of U.S. dollars demanded ________
A) rises; decreases B) rises; increases C) falls; decreases D) falls; increases
Economics
A $100 billion increase in government purchases would:
a. increase AD by $500 billion if MPC = 0.8. b. decrease AD by $300 billion if MPC = 2/3. c. decrease AD by $200 billion if MPC = 0.9. d. decrease AD by $40 billion if MPC = 0.4.
Economics