If the maximum potential combination of consumer and capital goods produced by an economy has increased over time, which of the following is true? a. Marginal tax rates have increased due to contradictory fiscal policy.  b. Keynesian policy initiatives have allowed for increased consumption of both consumer and capital goods. c. New physical capital has been introduced to firms throughout the economy. d. Resources are being utilized inefficiently at this combination of goods and services.  e. Monetary policy authorities have effectively decreased bank reserves through open market operations.

MACROECONOMICS FOR TODAY
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Chapter1: Introducing The Economic Way Of Thinking
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If the maximum potential combination of consumer and capital goods produced by an economy has increased over time, which of the following is true?

a. Marginal tax rates have increased due to contradictory fiscal policy. 

b. Keynesian policy initiatives have allowed for increased consumption of both consumer and capital goods.

c. New physical capital has been introduced to firms throughout the economy.

d. Resources are being utilized inefficiently at this combination of goods and services. 

e. Monetary policy authorities have effectively decreased bank reserves through open market operations.

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