Suppose There Is a Simultaneous Central Bank Purchase of Bonds

question 12

Multiple Choice

Suppose there is a simultaneous central bank purchase of bonds and increase in taxes. We know with certainty that this combination of policies must cause:

• A) an increase in i.
• B) a decrease in Y.
• C) a decrease in M.
• D) a decrease in i.
• E) an increase in Y.

---

Definitions:

Academic Abilities

The skills and competencies related to learning and academic performance, such as critical thinking, comprehension, and problem-solving.

Domestic Violence

A pattern of behavior in any relationship used to gain or maintain power and control over an intimate partner, encompassing physical, emotional, sexual, or psychological abuse.

Immigrants

Individuals who move from their country of origin to live in a foreign country permanently.

Witness

Someone who sees an event, typically a crime or accident, take place.