1. Fiscal policy refers to the idea that total economic output and unemployment can be affected by changes. a. in the money supply b. in government spending and taxes c. in trade policy d. none of the above is correct
2. An open market purchases of government bonds by the federal reserve results in ___ in the supply of money and ___ in interest rates. A. An increase/ a decrease B. A decrease / a decrease C. An increase / an increase D A decrease / an increase