Refer to the diagram, in which C 1 is the before-tax consumption schedule. Other things being equal, the economy would enjoy the greatest built-in stability with consumption schedule:

Which of the following is an example of fiscal policy?

A) a reduction in the money supply. B) a reduction in the federal funds rate. C) a reduction in lump-sum taxes. D) an increase in the physical stock of capital.

The potential for redistribution cannot be exaggerated

Indicate whether the statement is true or false