Which of the following is a Keynesian approach for dealing with a recession?
A. Raise taxes.
B. Raise interest rates.
C. Increase supply incentives for producers.
D. Increase government expenditure.
Answer: D
You might also like to view...
When the price of toothpaste increases by 15 percent, the quantity of toothpaste demanded falls by 30 percent. Calculate the price elasticity of demand. Is the demand for toothpaste elastic, inelastic, or unit elastic?
What will be an ideal response?
All students should go on to college.
A. True B. False C. Uncertain
Suppose the demand for X is given by Qxd = 100 - 2PX + 4PY + 10M + 2A, where PX represents the price of good X, PY is the price of good Y, M is income and A is the amount of advertising on good X. If advertising on good X increases by $10,000, then the demand for X will
A. decrease by $20,000. B. decrease by $100,000. C. increase by $20,000. D. increase by $100,000.
A situation in which spending exceeds income is
A. dissaving. B. autonomous consumption. C. average propensity to save. D. positive saving.