Which of the following fiscal policy actions would be appropriate if the economy is experiencing an recessionary? gap?
A. a decrease in taxes
B. an increase in interest rates
C. a decrease in government spending
D. a decrease in the money supply
Answer: A. a decrease in taxes
You might also like to view...
_____________ are the glue that holds any business together, refers to a series of events or activities that take place in a specific time and space, also applies to families with shared commitment over time
a. Metro neighbors b. Value chains c. Traditional tasks d. Triad aims
Economies of scale imply that within some range one can increase the size of operation and:
a. total cost will decrease. b. fixed cost will decrease. c. average total cost will decrease. d. average total cost will increase. e. average variable cost will decrease.
The greater the magnitude of the external benefits of production, a. The larger is the deadweight loss from overproduction
b. The greater would be the optimal tax. c. The less the private market solution would deviate from the socially efficient level of output. d. All of the above are true.
An excess burden is present when taxpayers alter their behavior on account of taxation
a. True b. False Indicate whether the statement is true or false