A) the most appropriate ﬁscal policy is an increase of government expenditures or a reduction of taxes.
B) the most appropriate ﬁscal policy is a reduction of government expenditures or an increase of taxes.
C) government should undertake neither expansionary nor contractionary ﬁscal policy.
D) the economy is achieving its maximum possible output.

Question

A) the most appropriate ﬁscal policy is an increase of government expenditures or a reduction of taxes. 
B) the most appropriate ﬁscal policy is a reduction of government expenditures or an increase of taxes. 
C) government should undertake neither expansionary nor contractionary ﬁscal policy. 
D) the economy is achieving its maximum possible output.

Quizplus · Accepted Answer

The Answer of 
A) the most appropriate ﬁscal policy is an increase of government expenditures or a reduction of taxes. 
B) the most appropriate ﬁscal policy is a reduction of government expenditures or an increase of taxes. 
C) government should undertake neither expansionary nor contractionary ﬁscal policy. 
D) the economy is achieving its maximum possible output.

A) the Most Appropriate ﬁScal Policy Is an Increase of Government