Which of the Following Would Expand Aggregate Demand According to Keynesians,while

question 121

Multiple Choice

Which of the following would expand aggregate demand according to Keynesians,while stimulating aggregate supply according to modern supply-siders?

• A)Increasing government purchases of resources and goods
• B)Increasing transfer payments
• C)Open-market purchases of Treasury bonds by the Fed
• D)Cutting the discount rate and reserve requirements on demand deposits
• E)Cutting personal and corporate marginal tax rates

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Definitions:

Subsidiary

A company that is controlled by another company, known as the parent company, often through a majority share of its stocks.

Exchange Rate

The price of one country’s currency in terms of another currency.

Inflation Rate

The tempo at which the universal price levels of goods and services advance, impairing the ability to buy.

Finnish Security

A financial investment like stocks, bonds, or other assets originating from Finland or issued by Finnish entities.