The choice between increasing government spending and cutting taxes often is related to
A) what an economist believes the value of both the tax multiplier and the government spending multiplier are.
B) what an economist believes the right size and scope of government might be.
C) whether an economist believes that government spending leads to complete crowding out.
D) a and b
E) all of the above
E
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Refer to Figure 23-3. Suppose that investment spending decreases by $5 million, decreasing aggregate expenditure and decreasing real GDP from GDP2 to GDP1. If the MPC is 0.8, then what is the change in GDP?
A) -$4 million B) -$5 million C) -$25 million D) -$40 million
When quantity demanded is greater than quantity supplied, market price is ________ the equilibrium price.
Fill in the blank(s) with the appropriate word(s).
The two characteristics of a public good are:
a. Non-rival and inelastic b. Non-exclusive and non-priced c. Non-rival and non-priced d. Non-exclusive and inelastic e. Non-rival and non-exclusive
Membership in the Federal Reserve System
A. is limited to national banks. B. is limited to state banks. C. is required of national banks and open to state banks. D. is forbidden to state banks.