Figure 15-2 -Refer to the Figure 15-2.If the Closed Economy Is at Economy

question 217

Multiple Choice

Figure 15-2
-Refer to the Figure 15-2.If the closed economy is at point b,the best policy to restore full employment is which of the following?

• A) increasing the money supply
• B) decreasing government purchases
• C) increasing taxes
• D) selling Canadian dollars

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Definitions:

Novation

The act of replacing an obligation to perform with a new obligation, or substituting a new party into an existing contract.

Successive Assignments

The process of transferring rights or duties from one party to another over a series of transactions.

Obligor

The party in a contractual agreement who is bound or obligated to perform a duty or payment to the obligee.

Assignee

A person or entity to whom rights or interests have been transferred by another, usually under the terms of a contract.