Which of the following individuals would most likely favor an increase in government spending, as opposed to a tax cut, as the basis for expansionary fiscal policy?
A. “There must be a constant philosophical prejudice against any intervention by the state into our lives, for by definition such intervention abridges liberty.”—William Simon
B. “The bastards [read politicians] can’t spend what they don’t have.”—Howard Jarvis
C. “The family that takes its mauve and cerise, air-conditioned, power-steered, power-braked automobile through cities that are badly paved, made hideous by litter, [and] blighted buildings...to picnic beside a polluted stream amid the stench of refuse may properly reflect on the curious unevenness of their blessings.”—J.K. Galbraith
D. “Public expenditures are made for the primary benefit of the middle class and financed with taxes on the poor and rich.”—Director’s Law
Answer: C
You might also like to view...
In the above diagram, what happens if the real GDP is $3 trillion? $5 trillion? $7 trillion? What is the equilibrium level of real GDP? Why?
What will be an ideal response?
Suppose the University of Oklahoma increases the price of student football tickets for the 2012 season by 30 percent. If the price elasticity of demand for student tickets is 1.22, the price increase leads to
A) a 36.6 percent decrease in the quantity demanded. B) a 30 percent decrease in the quantity demanded. C) a 1.22 percent decrease in the quantity demanded. D) a 28.78 percent decrease in the quantity demanded. E) no change in the quantity demanded.