Which of the following would increase GDP by the greatest amount?
A. A $20 billion reduction in taxes
B. $20 billion increases in both government spending and taxes
C. $20 billion decreases in both government spending and taxes
D. A $20 billion increase in government spending
D. A $20 billion increase in government spending
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What factors increase potential GDP? Include a definition of potential GDP in your answer
What will be an ideal response?
When economists say consumers, firms, or investors are behaving rationally, they mean:
A) they recognize that it is not worthwhile to invest in risky stocks B) they are taking actions to reach their goals, given the available information C) they have significant investment expertise D) they are consistently able to avoid poor performing stocks
In a fixed exchange rate system
A) market forces and the country's stock of gold determine its exchange rate. B) a central bank affects the value of a currency by changing its foreign exchange reserves. C) market forces play a role in determining the fixed value of a currency. D) the International Monetary Fund determines exchange rates.
What is his expected loss after installing the safety equipment
a. $20,000 b. $50,000 c. $100,000 d. $125,000