If Consumer and Business Sentiment Were to Increase Dramatically, Causing

question 31

Multiple Choice

If consumer and business sentiment were to increase dramatically, causing an expansionary gap:

• A)monetary policymakers could stabilize the economy by shifting their monetary policy reaction curve to the right.
• B)fiscal policymakers could stabilize aggregate demand by cutting income and business taxes.
• C)monetary policymakers would likely shift the monetary policy reaction curve to the left to shift the dynamic aggregate demand left.
• D)fiscal policymakers could stabilize aggregate demand by increasing government purchases.

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Definitions:

Fitness and Quality

Standards and criteria that products or services must meet to be considered satisfactory and suitable for their intended purpose.

Principle Of Privity

The Principle of Privity in contract law states that only parties involved in the contract have the right to sue or be sued on that contract, highlighting the exclusivity of contractual obligations and benefits.

Consumer Protection

Laws and regulations designed to safeguard buyers of goods and services against unfair practices.

Legislative Changes

Amendments or enactments made to current laws by a legislative body.