1.Which of the following policies will shift the AD curve to the LEFT?

Group of answer choices

an increase in tax rates

an increase in the money supply

an increase in government spending

a decrease in tax rates

2.

Businesses that cannot raise funds through the stock or bond markets:

Group of answer choices

must hold all of their assets in liquid form.

can use banks for their financing needs.

are crowded out of the market.

can use the government for their financing needs.

3. A household's wealth is:

Group of answer choices

what it earns in each period.

what it saves in each period.

the value of its accumulated savings.

the value of its financial assets.

4.Aggregate demand will decrease if:

Group of answer choices

the public becomes more pessimistic.

government spending increases.

household wealth increases.

the aggregate price level increases.

5.A $200 million increase in investment spending will increase real GDP by _____.

Group of answer choices

$100 million

$0

$200 million

more than $200 million