5. The Aggregate Demand Curve is downward sloping due to A. the impact on inflation on the purchasing power of the public's financial assets B. changes in the demand for money leading to an increase in the interest rate C. the relationship between the price level in the U.S. relative to the price level in other countries D. all the above 6. TRUE or FALSE As GDP rises, personal income tax collections and corporate income tax collections automatically rise and transfer payments and subsides automatically decline. 7. Federal Fiscal policy is primarily carried out by A. only state governments B. the Federal Reserve System C. Congress (Legislative Branch) and the Executive Branch D. only local governments 8. TRUE or FALSE A $20 bill is a note of the United States Treasury.
5. The Aggregate Demand Curve is downward sloping due to A. the impact on inflation on the purchasing power of the public's financial assets B. changes in the demand for money leading to an increase in the interest rate C. the relationship between the price level in the U.S. relative to the price level in other countries D. all the above 6. TRUE or FALSE As GDP rises, personal income tax collections and corporate income tax collections automatically rise and transfer payments and subsides automatically decline. 7. Federal Fiscal policy is primarily carried out by A. only state governments B. the Federal Reserve System C. Congress (Legislative Branch) and the Executive Branch D. only local governments 8. TRUE or FALSE A $20 bill is a note of the United States Treasury.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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