Which of the following would cause the level of income to change by the greatest amount,ceteris paribus?
A) An increase in Social Security payments of $10 billion.
B) A reduction in personal income taxes of $10 billion.
C) An increase in defense spending of $10 billion.
D) All of the other choices have equal impacts on the level of income.
Correct Answer:
Verified
Q51: If the desired fiscal restraint is $80
Q52: Suppose the government decides to increase taxes
Q53: What happens to aggregate demand when government
Q54: Assume the MPC is 0.75,taxes increase by
Q55: If the MPC for an economy is
Q57: Fiscal restraint is defined as
A)Tax hikes or
Q58: The inflationary GDP gap differs from the
Q59: The desired fiscal restraint is equal to
A)Excess
Q60: Assume the economy is at full employment
Q61: 
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