Which of these would be a fiscal policy the government might want to use if the economy is operating at too high a level of output?
A. Increasing income tax rates
B. Increasing the money supply and lowering interest rates
C. Increasing government purchases of goods and services
Answer: A. Increasing income tax rates
Economics
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Refer to Table 20-10. Suppose an economy has only three goods and the typical family purchases the amounts given in the table above. If 2011 is the base year, then what is the CPI for 2016?
A) 14.3 B) 87.5 C) 114.3 D) 160
Economics
The money supply is certain to increase if the Treasury finances expenditures by borrowing from the
A) Federal Reserve. B) banking system. C) non-bank financial system. D) general public.
Economics