Macro. Chapter 21 【The Influence of Monetary and Fiscal Policy on Aggregate Demand】

1. The opportunity cost of holding assets as money

2. The theory of liquidity preference and the downward-slopingaggregate demand curve 
Please Identify your case (Decrease or Increase) First

3. Changes in the money supply
Please Identify your case (Decrease or Increase) First

4. The multiplier effect of a change in government purchases
Please Identify your case (Decrease or Increase) First

5. Fiscal policy, the money market, and aggregate demand



6. Changes in taxes

7. Use of discretionary policy to stabilize the economy

8. Using policy to stabilize the economy