In order to help the economy recover from a recession using fiscal policy, the government can ________ so that aggregate demand increases
A) cut taxes
B) raise taxes
C) cut government expenditure on goods and services
D) raise interest rates
E) decrease the quantity of money
A
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Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Mia's opportunity cost of producing one bandana is
A) 1/3 of a hair pin. B) 2.5 hair pins. C) 3 hair pins. D) 9 hair pins.
The U.S. monetary policy implemented in 2008 was an attempt to
A) give billions of dollars to businesses and low- and middle-income Americans in order to stimulate business investment and consumption expenditure and thereby increasing AD. B) decrease interest rates in order to stimulate business investment and consumption expenditure, thereby increasing SAS. C) decrease interest rates in order to stimulate business investment and consumption expenditure, thereby increasing AD. D) decrease the exchange rate in order to boost net exports, thereby increasing AD.