Suppose There Is a Simultaneous Tax Increase and Open Market

question 49

Multiple Choice

Suppose there is a simultaneous tax increase and open market sale of bonds. Which of the following must occur as a result of this?

• A) Output increases.
• B) Output decreases.
• C) The interest rate increases.
• D) The interest rate decreases.
• E) Both output and the interest rate increase.

---

Definitions:

Brainstorming Session

A collaborative approach where a group of individuals come together to generate creative ideas and solutions.

Worst Ideas

Concepts or plans that are considered to be exceptionally bad, ineffective, or harmful, often resulting in negative outcomes when implemented.

Best Ideas

The most effective, efficient, or creative solutions or suggestions brought forth in a given context.

Alpha Testing

An early stage of software testing conducted primarily by developers or in a controlled environment to identify bugs before release to end users.