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:

Replication

Repeating the essence of a research study, usually with different participants in different situations, to see whether the basic finding extends to other participants and circumstances.

Representative

Serving as a typical or characteristic example of a group, concept, or category.

Random Sample

A sample that fairly represents a population because each member has an equal chance of inclusion.

Behaviors Or Attitudes

Observable actions or mental positions held by individuals towards objects, people, or concepts.