During the Great Recession,the U

question 42

Multiple Choice

During the Great Recession,the U.S.aggregate demand curve shifted to the left,in part,because

• A) there was an increase in expected income.
• B) the government dramatically increased taxes.
• C) there was a decrease in expected income.
• D) the Federal Reserve increased interest rates.
• E) U.S.housing prices increased.

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Definitions:

Federal Reserve System

The central banking system of the United States, responsible for monetary policy, regulating banks, maintaining financial stability, and providing financial services to depository institutions, the U.S. government, and foreign official institutions.

Money In Circulation

The total amount of physical currency and coin that is in the general public's hands and the vaults of financial institutions.

Tax Loopholes

Provisions or gaps in tax legislation that allow individuals and corporations to legally reduce their tax liabilities through various means not fully intended by the lawmakers.

Taxable Income

The portion of an individual or entity's income used as the basis for calculating the amount of tax they owe to the government, after allowed deductions and exemptions.