Assume the economy is at full employment and that investment spending declines dramatically.If the goal is to restore full employment, government fiscal policy should be directed toward
A) an equality of tax receipts and government expenditures.
B) an excess of tax receipts over government expenditures.
C) an excess of government expenditures over tax receipts.
D) a reduction of subsidies and transfer payments and an increase in tax rates.
Correct Answer:
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Q8: If the MPS in an economy is
Q8: Fiscal policy refers to the
A)deliberate changes in
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Q12: Countercyclical discretionary fiscal policy calls for
A)surpluses during
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Q14: Expansionary fiscal policy is so named because
Q15: The group of three economists appointed by
Q16: Discretionary fiscal policy is so named because
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