The Congressional Budget Office estimates the size of the government purchases multiplier to be

Supply-side theory suggests that

A) aggregate supply does not depend on labor productivity. B) increased government spending does not increase aggregate demand. C) lower tax rates may not reduce overall tax revenues. D) increased labor productivity may not increase real output.

To determine the total change in deposits as a result of an injection of reserves, we must

a. sum the number of loans a bank has made b. multiply the injection of reserves by 10 c. multiply the number of loans by the expenditure multiplier d. sum the reserves of each bank e. multiply the injection of reserves by the demand deposit multiplier