This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Assume Congress enacts a 10 billion increase in spending and a 10 billion tax increase to finance ... (Read 65 times)

V@ndy87

  • Hero Member
  • *****
  • Posts: 571
on: Jun 30, 2018
Assume Congress enacts a 10 billion increase in spending and a 10 billion tax increase to finance the additional government spending. The result of this balanced-budget approach is a:
 a. 20 billion increase in aggregate demand.
  b. 10 billion increase in aggregate demand.
  c. 100 billion increase in aggregate demand.
  d. 10 billion decrease in aggregate demand.

Question 2

The transmission mechanism is the effect of changes in monetary policy on prices, real GDP, and employment.
 a. True
  b. False
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bitingbit

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

True


V@ndy87

  • Member
  • Posts: 571
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

xoxo123

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Did you know?

The human body's pharmacokinetics are quite varied. Our hair holds onto drugs longer than our urine, blood, or saliva. For example, alcohol can be detected in the hair for up to 90 days after it was consumed. The same is true for marijuana, cocaine, ecstasy, heroin, methamphetamine, and nicotine.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Earth’s history spans 4.5 billion years. Geologists and paleontologists have pieced together the his Earth’s history spans 4.5 billion years. Geologists and paleontologists have pieced together the his
A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan
To increase pressure using body weight, lean on your client. To increase pressure using body weight, lean on your client.
Increase in Obesity among U.S. Children and Adolescents Increase in Obesity among U.S. Children and Adolescents
Effect of an Increase in R&D in the Follower Country on the Steady State Effect of an Increase in R&D in the Follower Country on the Steady State
Increase in total spending in presidential campaigns, 1976-2020 Increase in total spending in presidential campaigns, 1976-2020
Video: Olfaction. or the sense of smell

For a complete list of videos, visit our video library