Fiscal policy refers to the idea that changes in:
A) the Reserve Bank of Australia with its money supply mechanisms can affect aggregate demand
B) government purchases and taxing policy can affect aggregate demand
C) the price level affects the equilibrium interest rate
D) the exchange rate affects net exports
Correct Answer:
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Q34: When the government reduces taxes, households' take-home
Q35: Economists agree that:
A)fiscal policy can be used
Q36: An increase in government purchases of $100
Q37: The RBA can stimulate the economy by
Q38: For a given fixed price level, an
Q40: Assume that the MPC is 0.5.A $100-billion
Q41: The lag problem associated with monetary policy
Q42: Suppose we observe that an increase in
Q43: The aggregate supply curve is _ in
Q44: Which of the following cannot stabilise a
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