According to the Keynesian view, if policy makers thought the economy was about to enter an inflationary boom, which of the following would be most appropriate?
A) a tax increase
B) a planned increase in the budget deficit
C) an increase government expenditures
D) a tax decrease
Correct Answer:
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Q66: The main reason that the deficit grows
Q67: Automatic stabilizers will shift the government budget
Q68: Unemployment compensation payments
A) rise during a recession
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Q70: The distinction between discretionary fiscal policy and
Q72: Discretionary fiscal policy involves
A) expansion of government
Q73: If policy makers believe that an inflationary
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Q75: According to the Keynesian model, which of
Q76: When an economy dips into recession, automatic
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