Answer the following questions true (T) or false (F)
1. When the Federal Reserve increases the money supply, people spend more because they now have more money.
2. The dynamic aggregate demand and aggregate supply model accounts for the price level rising every year.
3. Expansionary monetary policy enacted during a recession will cause the inflation rate to increase.
1. FALSE
2. TRUE
3. TRUE
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In a progressive tax structure:
a. both the tax rate and absolute tax amount increase with an increase in income. b. the tax rate remains constant, but the absolute tax amount increases with an increase in income. c. both the tax rate and absolute tax amount decline with an increase in income. d. the tax rate falls,but the absolute tax amount increases with an increase in income. e. the tax rate increases, but the absolute tax amount decreases with an increase in income.
The hallmark of Clintonomics was first to reduce the budget deficit.
Answer the following statement true (T) or false (F)