Which of the following would have
opposite effects on aggregate demand?
An increase in taxes; an increase in government
Open market purchases by the Federal Reserve; a
reduction in the discount rate
An increase in exports; an increase in
An increase in the reserve
requirement; a desire by people to hold larger cash
Which of the following would increase the
aggregate supply of an economy?
A tax increase.
A purchase by the Federal Reserve of
securities on the open market.
A reduction in energy supplies.