1)The OECD( organization for economic cooperation and development)data also indicate for example that the stimulative effects of tax reductions are considerably smaller than those triggered by government expenditure increases, a fact of life long recognized by economists.
Explain why ?

2)Bank Reserves are created in the process, since the Fed can pay simply by crediting the amount of its purchases to the account of the bank involved in the transaction. As a result...
a) What kind of transaction is being discussed here?
b) complete the above statement

3)Suppse the multiplier is 3, the money mutliplier is 6, and the income multiplier to rmoney supply is 4. The governemnt increases spending by $12 billion, but because the economy is operating at full capacity, it wants to use monetary plicy to offset the impact this increase will have on income
a)Does central bank need to buy or sell bonds to offset this policy
b)How many bonds must the monetary authorities buy or sell to accomplish

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