If the Fed Increases the Quantity of Money, __________Economists Believe

question 18

Multiple Choice

If the Fed increases the quantity of money, __________economists believe that the__________ .

• A) monetarist; aggregate demand curve shifts rightward
• B) monetarist; cyclical deficit increases
• C) Keynesian; aggregate supply curve shifts rightward
• D) Keynesian; structural deficit increases

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Definitions:

Distribution of Income

Refers to the way in which total income is shared among the holders of different types of assets within an economy.

Negative Income Tax

A tax system that collects revenue from high-income households and gives subsidies to low-income households.

Family Income

The total amount of money earned by members of a family, typically measured annually.

Negative Income Tax

A welfare system that provides income support by offering a direct transfer of funds to individuals whose income falls below a certain threshold.