Consider Two Fiscal Policy Actions

question 33

Multiple Choice

Consider two fiscal policy actions.
I. a $400 billion reduction in income taxes
II. a $400 billion increase in government purchases
Which policy will have a bigger impact on aggregate demand?

• A) Both policies will have the exact same impact.
• B) Policy II because it affects aggregate demand directly.
• C) Policy I because it affects disposable income directly.
• D) Policy I because it works through consumption which is the largest component of aggregate demand.

Understand the negative effects of divorce on children.

Explain Bohannon's stages of divorce.

Discuss the economic considerations and obligations following a divorce.

Understand appropriate phone etiquette and communication strategies in a medical office setting.

---

Definitions:

Interest Rate

The cost of borrowing money, expressed as a percentage of the amount borrowed.

Present Value

The current financial valuation of a sum of money due in the future or stream of income, based on a specific interest rate.

Future Value

The worth of an investment or cash flow at a specified future date, based on an assumed rate of growth over time.

Opportunity Cost

Opportunity cost refers to the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.