A cut in taxes ________, therefore shifting the aggregate demand curve to the __

Question

A cut in taxes ________, therefore shifting the aggregate demand curve to the ________.

a.increases disposable income and consumption; right

decreases government transfers and consumption; right

c. decreases the marginal propensity to save and consumption; left

increases corporate profits and investment; left

The value of M1 is ________ and the value of M2 is ________:

$880 billion; $2805 billion.

$895 billion; $3355 billion.

$895 billion; $2460 billion.

$920 billion; $2005 billion.

The economy is currently at the position shown above. The government could close the output gap by (increasing, decreasing) _________ government spending by $_________. The MPC = 0.6.

increase; $500

decrease; $500

decrease; $300

decrease; $200

Refer to the balance sheet. If the required reserve ratio for ABC Bank is 15%, then the bank is required to maintain minimum reserves of ________ and will have excess reserves of ________:

$100 million; $0 million.

$15 million; $85 million.

$15 million; $2 million.

$15 million; $0 million.

a.increases disposable income and consumption; right

decreases government transfers and consumption; right

Explanation / Answer

A cut in taxes ________, therefore shifting the aggregate demand curve to the ________.

answer is .increases disposable income and consumption; right

Please provide balance sheet for others.

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