QUESTION 17 Decisions regarding purchases and sales of securities by the Fed are made by:
a. FDIC
b. Federal Open Market Committee c Federal Punds Committee d. Discount Committee QUESTION 18 Typically, the budget deficit is financed by: a printing money b issuing debt c.raising taxes d. both a. and c
QUESTION 19 The larger the MPC a the less powerful changes in individual taxes will be in changing aggregate demand b the smaller the multiplier c the larger the effect of business taxes which reduce investment on aggregate demand d the smaller the effect of a given increase in government purchases on consumption purchases. QUESTION 20 Which of the following will not cause consumption, and as a result, aggregate demand, to increase? a. a tax cut b. a tax increase c. an optimistic business forecast of future income growth d. an increase in consumer confidence.
