Suppose That in an Attempt to Increase Employment, the Government

question 69

Multiple Choice

Suppose that in an attempt to increase employment, the government increases spending and runs a deficit. As a result of this deficit there is an increase in interest rates. This deficit was most likely financed by:

• A) an increase in marginal tax rates.
• B) the Treasury selling securities to the Federal Reserve.
• C) the Federal Reserve selling securities to commercial banks.
• D) the Treasury selling bonds to firms and households.

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Definitions:

Assessing Change

The evaluation of modifications, developments, or shifts in a situation or environment, often to understand impacts or plan accordingly.

Political Maneuvering

The strategic actions and tactics used by individuals or groups to navigate or influence political environments and outcomes.

Force-Coercion Strategy

A change management approach that relies on the use of authority, threats, or pressure to achieve desired organizational changes.

Special Advantage

A special advantage refers to a unique strength or benefit that an entity possesses, setting it apart from competitors and contributing to its success.