Which of the following would increase GDP by the greatest amount?
A. A $20 billion reduction in taxes
B. $20 billion increases in both government spending and taxes
C. $20 billion decreases in both government spending and taxes
D. A $20 billion increase in government spending
D. A $20 billion increase in government spending
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Briefly explain the behavior of the Federal Reserve considering a balance of payments disequilibria within a fixed exchange rate system
What will be an ideal response?
By the accelerator hypothesis, if a firm's actual sales jump in one period to a higher maintained level, that firm's replacement investment
A) also jumps in one period to a higher maintained level. B) gradually drifts upward to a higher maintained level. C) jumps upward and then falls back to zero. D) jumps upward and then falls back part of the way.