1,,What would happen to the planned investment function if business taxes weredecreased?

A. There would be a upward movement along the function.

B. There would be no change.

C. It would shift to the right.

D. It would shift to the left.

2.When it takes time for the president and Congress to change fiscal policy to act on economicdata, we havea(n)

A. recognition time lag.

B. aggregate time lag.

C. action time lag.

D. effect time lag.

3.If the government increases aggregate demand when the economy is at bothshort-run andlong-run equilibrium, the fulllong-run effect of this fiscal policy will be to

A. increase the price level.

B. increase either the real Gross Domestic Product(GDP) or the pricelevel, depending on the length of the time lag.

C. increase real Gross Domestic Product(GDP).

D. decrease both real Gross Domestic Product(GDP) and the price level.

4..When the Fed sells a U.S. bond in the open market

A. total reserves do not change but the money supply increases.

B. total reserves will increase.

C. total reserves will decrease.

D. total reserves do not change but the money supply decreases.

5.To increase the moneysupply,

A. the Federal Reserve should sell government securities.

B. the Federal Reserve should increase reserve requirements.

C. the Federal Reserve should buy government securities.

D. the commercial banks should reduce their loans.

Thank you for the help.