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D Question 2 2 pts Which of the following policies is NOT an example of discretionary fiscal policy? The Kennedy administration in the 1960s issued an investment tax credit A fiscal stimulus package of $787 billion signed by Obama in 2008 President Bush when he took office in 2001, gave a $1.35-billion tax cut All the policies above are discretionary fiscal policies Question 3 2 pts The objective of the expansionary fiscal policy is to O shift the aggregate demand curve to the right shift the aggregate demand curve to the left O shift the aggregate supply curve to the left O shift the aggregate supply curve to the right Question 4 2 pts With an investment tax credit of 10%, for example, a firm that engaged in $1 million worth of investment during a year could reduce its tax liability for that year by O $ 100,000 $ 10,000 O $ 1000,000 None of the above Question 5 2 pts Which of the following statements is FALSE? O An increase in the investment tax credit, will increase investment O An increase in the investment tax credit, shift the aggregate demand curve to the right O A reduction in corporate income tax rates, will increase investment O A reduction in corporate income tax rates, shift the aggregate demand curve to the left Question 6 2 pts Which of the following statements is FALSE? Income taxes affect the consumption component of aggregate demand An increase in income tax s reduces disposable personal income An increase in income tax shifts the aggregate demand curve leftward O None of the above