The Fed affects aggregate demand through monetary policy by changing
A) tax rates on only interest income and so influencing disposable income.
B) government expenditure and so influencing the budget balance.
C) the quantity of reserves and determining government expenditure.
D) tax rates and influencing disposable income.
E) the federal funds rate and the quantity of reserves.
E
Economics
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A) Reputation B) Demand C) Revenue D) Cost
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Answer the following questions true (T) or false (F)
1. Innovations, including new products and services, in financial markets and institutions have made the job of defining the money supply easier. 2. Most U.S. currency held outside the U.S. banking system is held by foreigners. 3. A person's wealth is the same as his income.
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