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QUESTION 17 Decisions regarding purchases and sales of securities by the Fed are made by: FDIC Federal Open Market Committee Oc Federal Punds Committee d. Discount Committee QUESTION 18 Typically, the budget deficit is financed by: a printing money Ob issuing debt Oraising taxes O d. both a. and QUESTION 19 The larger the MPC a the less powerful changes in individual taxes will be in changing aggregate demand Ob the smaller the multiplier c the larger the effect of business taxes which reduce investment on aggregate demand Od the smaller the effect of a given increase in government purchases on consumption purchases. QUESTION 20 Which of the following will not cause consumption, and as a result, aggregate demand, to increase? O a. a tax cut O b. a tax increase c. an optimistic business forecast of future income growth O d. an increase in consumer confidence