In the aggregate expenditures model of the economy, a downward shift in aggregate expenditures can be caused by a:
A. Decrease in government spending or an increase in taxes
B. Decrease in taxes or an increase in government spending
C. Decrease in interest rates or a decrease in taxes
D. Decrease in saving or an increase in government spending
A. Decrease in government spending or an increase in taxes
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Refer to the scenario above. If Jack has to decide between the number of paintings and sculptures he wants to make in the given time, which of the following will best represent his options?
A) A budget constraint B) Isoquants C) A production possibilities curve D) A supply curve
The ability of a commercial bank to increase the money supply is limited by the
A) availability of eligible borrowers and the bank's reserves in relation to legal reserve requirements. B) demand of the public for liquidity. C) eligibility of the bank for currency drafts and its ratio of M2 to M1. D) willingness of customers to withdraw currency for circulation.