Solved

If the Government Wishes to Increase Its Spending on Goods

Question 2

Multiple Choice

If the government wishes to increase its spending on goods and services by $10 billion without increasing the overall level of aggregate demand,it should


A) increase taxes by $10 billion.
B) decrease taxes by $10 billion.
C) increase taxes by more than $10 billion.
D) increase taxes,but by less than $10 billion.
E) leave tax receipts unchanged.

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents