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Unformatted text preview: of increasing it (use the equation, Y = C + I + G + X) 12. d. 13. a. 14. c. Supply-side economists argue that workers will work more if tax rates decrease since workers will be able to keep more of their paycheck. 15. b. 16. e. 17. a. banks primarily earn money by lending out excess reserves to businesses and customers. (Regular)Reserves are left at the Fed or held in the vault. 18. c. banks increase the money supply by extending loans due to the money multiplier and fractional reserve requirement Macroeconomics (Calhoun) Test 3 Review Packet Fall 2010 2 19. a. 20. e....
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This document was uploaded on 11/01/2011 for the course ECO ECO2013 at FSU.
- Fall '10