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Basic Question 2 of 7

A tax cut reduces the amount of money that taxpayers owe the government and frees up money for personal spending. This can cause a ______.

A. demand shock
B. supply shock
C. tax shock

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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

determine whether a monetary policy is expansionary or contractionary;

describe limitations of monetary policy;

CFA® 2024 Level I Curriculum, Volume 2, Module 12.