An example of expansionary fiscal policy is
A) an increase in government spending, or an increase in taxes, or both.
B) a decrease in government spending, or a decrease in taxes, or both.
C) an increase in government spending, or a decrease in taxes, or both.
D) a decrease in government spending, or an increase in taxes, or both.
E) holding government spending constant while increasing taxes.
C
You might also like to view...
Everything else held constant, in the market for reserves, when the federal funds rate equals the interest rate paid on excess reserves, raising the interest rate paid on excess reserves
A) increases the federal funds rate. B) lowers the federal funds rate. C) has no effect on the federal funds rate. D) has an indeterminate effect of the federal funds rate.
Which of the following is evidence that consumption depends on total wealth, and not just on current income?
A) People save very little for their retirement. B) The pre-announced phased-in tax cuts of 1981-83 caused little change in consumption in 1981. C) A drop in consumer confidence, with unchanged current income, often causes total consumption spending to fall. D) all of the above E) none of the above