Which statement demonstrates one of the three principles of economy-wide interactions?
A)A student chooses to rent a movie with friends,rather than study for an economics quiz.
B)Your roommate offers to pay for the movie tickets if you drive to the theater.
C)A city builds a new public park on the grounds of an abandoned warehouse.
D)In 2008,fearing a recession,Congress approved a White House proposal to rebate some taxes for 2007.

Question

Quizplus · Accepted Answer

The statement D demonstrates the principle of fiscal policy, which is a policy that the government uses to affect the economy. In this statement, Congress approved a White House proposal to rebate some taxes for 2007 to prevent a recession from occurring. This is an example of the government using fiscal policy to stimulate the economy.

Which Statement Demonstrates One of the Three Principles of Economy-Wide