Governments Can Affect the Level of Aggregate Demand in a Direct

question 174

Multiple Choice

Governments can affect the level of aggregate demand in a direct way by changing

• A)government spending.
• B)exports.
• C)taxes.
• D)transfer payments.

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Definitions:

Stale Check

A check that is more than 90 days past the date on its face; banks do not owe a duty to their customers to pay any such checks more than six months past the dates on their face.

Good Faith

Good faith refers to an honest intention to act without taking an unfair advantage over another party, often emphasized in contractual agreements and negotiations.

Six Months

A period of time equivalent to half a year or approximately 182 to 183 days.

Stop-Payment Order

A request made to a financial institution to cancel the processing of a check or payment before it has been cleared.