q11. A contractionary fiscal policy by a government may result in which of the following?

• An increased trade deficit
• a reduction in government borrowing
• crowding out of private investment
• lower interest rates

q12. How federal government taxing and spending affects aggregate demand is

• the point of corporate policies.
• the point of fiscal policy.
• the point of monetary policy.

q13. Reducing tax rates encourages ________ according to supply side economists.

• businesses to increase investment spending
• people to enjoy more time off
• consumers to spend less