To close a recessionary gap using fiscal policy, the government can:
a. increase government spending by the size of the gap
b. decrease government spending by the size of the gap.
c. increase government spending by more than the size of the gap.
d. increase government spending by less than the size of the gap.
e. decrease government spending by more than the size of the gap.
d
You might also like to view...
An expansionary fiscal policy will lead to
A. higher interest rates, an appreciated dollar, and reduced net exports. B. higher interest rates, an appreciated dollar, and increased net exports. C. reduced interest rates, an appreciated dollar, and reduced net exports. D. reduced interest rates, an appreciated dollar, and increased net exports.
If the simple spending multiplier is 10, the marginal propensity to save (MPS) is:
a. 1/10. b. 9/10. c. 1/9 d. 10/9. e. 9.
A limit on the dollar worth of oranges imported into the United States is an example of a quantity quota
a. True b. False Indicate whether the statement is true or false
The diagram indicates that the marginal revenue of the sixth unit of output is:
A. -$1.
B. $1.
C. $4.
D. $24.