To close a recessionary gap through fiscal policy, the government should
A) decrease government spending in order to increase aggregate supply.
B) increase government spending in order to increase aggregate demand.
C) reduce taxes in order to stimulate investment, and thus increase aggregate supply.
D) increase government spending and taxes in order to both increase aggregate demand and aggregate supply.
B
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Which of the following changes is observed when the Fed increases the federal funds rate? a. Inflation is brought to an immediate halt
b. The inflation rate increases for several months, but then begins to decrease. c. Major banks try to offset this change by lowering the interest rates they charge on loans. d. Major banks try to offset this change by lowering the interest rates they pay on savings deposits. e. Major banks raise the prime interest rate that they charge to their best customers.
The demand for real estate derives from the need that market participants (e.g., owner occupants, tenants, renters) have for shelter and convenient access to other locations. This competition for physical location and space occurs in the:
A. User Market B. Capital Market C. Government Sector D. Property Market