If the government announces a big tax cut, which of the following combinations of events would be most likely to occur?
a. An upward shift of the aggregate expenditure line, a rightward shift of the money demand curve, and a rightward shift of the aggregate demand curve
b. A downward shift of the aggregate expenditure line, a leftward shift of the money demand curve, and a leftward shift of the aggregate demand curve
c. An upward shift of the aggregate expenditure line, a leftward shift of the money demand curve, and a rightward shift of the aggregate demand curve
d. A downward shift of the aggregate expenditure line, a rightward shift of the money demand curve, and a rightward shift of the aggregate demand curve
e. An upward shift of the aggregate expenditure line, a rightward shift of the money demand curve, and a leftward shift of the aggregate demand curve.
A
You might also like to view...
Which of the following is NOT a necessary precondition for economic growth?
A) economic freedom B) democracy C) property rights D) free markets E) ALL of the above are necessary preconditions.
Experts predict that the future structure of the U.S. banking industry will have
A) an increased number of banks. B) as few as ten banks. C) several thousand banks. D) a few hundred banks.