What could cause AD to shift left: increase in taxes, increase in gov spending, fed buys bonds, decrease in interest rates?
Benchmark Review

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•
Social Studies
•
12th Grade
•
Hard
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16 questions
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1.
FLASHCARD QUESTION
Front
Back
increase in taxes
2.
FLASHCARD QUESTION
Front
If AD decreases, then
Back
unemployment increases
3.
FLASHCARD QUESTION
Front
When the government deliberately alters its level of spending and/or taxing in order to achieve changes in aggregate demand, it is exercising
Back
fiscal policy.
4.
FLASHCARD QUESTION
Front
Which of the following is an example of the expansionary fiscal policy? Increase in government spending, Decrease in government spending, Increase in reserve requirement, Decrease in reserve requirement
Back
Increase in government spending
5.
FLASHCARD QUESTION
Front
When the government needs to borrow funds for long periods of time, it
Back
issues bonds.
6.
FLASHCARD QUESTION
Front
Which of the following is NOT a tool used by the Federal Open Market Committee when conducting monetary policy?
Options:
taxes,
omo,
rr,
dr
Back
taxes
7.
FLASHCARD QUESTION
Front
Suppose a bank customer deposits $5,000 in cash into a local bank that currently has no excess reserves. Given a reserve requirement of 10%, how much does the bank need to keep?
Back
$500
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