Fiscal restraint is defined as
A) Tax hikes or spending cuts intended to reduce aggregate demand.
B) Tax hikes or spending cuts intended to increase aggregate demand.
C) Tax cuts or spending hikes intended to increase aggregate demand.
D) Tax cuts or spending hikes intended to reduce aggregate demand.
Correct Answer:
Verified
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
Q56: Which of the following would cause the
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: Q62: 
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents