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Suppose the U.S. economy finds itself in a recession after a recent financial crisis and series of unfortunate international events. If the government wants to stabilize the economy by employing fiscal policy, which of the following policy combinations would do the most to shift AD in the right direction?
A:Increase taxes and increase government spending.
B: Decrease taxes and increase government spending.
C: Increase taxes and decrease government spending.
D: Decrease taxes and decrease government spending.
Please search for some information about the Dodd-Frank Act and share with us. Please evaluate this act by answering the following questions: Do you think this Act can successfully avoid financial crisis in future? Why or why not?
What are the average money holdings when the individual makes the optimal number of trips to the bank?
Maturity Risk Premium The real risk-free rate is 2.25%, and inflation is expected to be 3.75% for the next 2 years. A 2-year Treasury security yields 9.75%. What is the maturity risk premium for the 2-year security?
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