the economics of money, banking, and financial markets

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14. 
    

    Everything else held constant, a decrease in net taxes ____ aggregate ____.
    A) increases; demand
    B) decreases; demand
    C) decreases; supply
    D) increases; supply
    Answer: A
    Diff: 2 Type: MC Page Ref: 575
    Skill: Recall
    Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
    of aggregate output and the inflation rate

    
    


15. 
    

    Everything else held constant, an increase in net taxes ____ aggregate ____.
    A) increases; demand
    B) decreases; demand
    C) decreases; supply
    D) increases; supply
    Answer: B
    Diff: 2 Type: MC Page Ref: 575
    Skill: Recall
    Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
    of aggregate output and the inflation rate

    
    


16. 
    

    Everything else held constant, a balanced budget increase in government spending (that is, an
    increase in government spending that is matched by an identical increase in net taxes) will
    ____.
    A) increase aggregate demand, but not by as much as if just government spending increases
    B) increase aggregate demand by more than if just government spending increases
    C) not affect aggregate demand
    D) decrease aggregate demand
    Answer: A
    Diff: 2 Type: MC Page Ref: 575
    Skill: Recall
    Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
    of aggregate output and the inflation rate

    
    


17. 
    

    Everything else held constant, an increase in net exports ____ aggregate ____.
    A) increases; demand
    B) decreases; demand
    C) decreases; supply
    D) increases; supply
    Answer: A
    Diff: 2 Type: MC Page Ref: 575
    Skill: Recall
    Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
    of aggregate output and the inflation rate