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Author Question: Assume Congress enacts a 10 billion increase in spending and a 10 billion tax increase to finance ... (Read 154 times)

V@ndy87

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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


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bitingbit

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Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

True


V@ndy87

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

mcarey591

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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