If the government wants to close a GDP gap, it should:
a. borrow funds from the public by issuing bonds.
b. lower taxes and raise government spending.
c. lower government spending on social security.
d. raise both direct and indirect tax rates.
e. adopt contractionary fiscal policies to control inflation.
b
You might also like to view...
The U.S. real interest rate rises relative to the British real interest rate. British net exports ________ and the British exchange rate ________
A) increase; rises B) increase; falls C) decrease; rises D) decrease; falls
Which of the following services have experienced declines in relative prices due to productivity increases?
a. medical services b. restaurant meals c. theatrical performances d. Internet access services
Corporations, like individuals, face an alternative minimum tax (AMT).
A. True B. False C. Uncertain
Import quotas are aimed at increasing the quality of domestic products
a. True b. False Indicate whether the statement is true or false