Expansionary fiscal policy occurs when the government increases __________, decreases __________, or both to stimulate the economy toward expansion. spending; the money supply taxes; spending the money supply; spending spending; taxes the money supply; taxes
Expansionary fiscal policy occurs when the government increases __________, decreases __________, or both to stimulate the economy toward expansion. spending; the money supply taxes; spending the money supply; spending spending; taxes the money supply; taxes
Chapter15: Fiscal Policy
Section: Chapter Questions
Problem 1SQ
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Question 33
Expansionary fiscal policy occurs when the government increases __________, decreases __________, or both to stimulate the economy toward expansion.
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spending; the money supply
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taxes; spending
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the money supply; spending
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spending; taxes
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the money supply; taxes
Question 34If your marginal propensity to consume is 0.6 and you get an additional $600 in income, you would spend ______ on consumption.
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$200
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$240
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$360
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$1,000
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$1,500
Question 35If a bank has a
required reserve ratio of 25% and there are $5,300,000 in deposits, what is amount ofrequired reserves ?-
$25,000
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$280,000
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$1,325,000
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$2,275,000
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$5,005,000
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-
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