What fiscal policies can be used to get the economy out of a contractionary gap?
a. Increase tax rates and increase government spending.
b. Decrease tax rates and decrease government spending.
c. Decrease tax rates and increase government spending.
d. Increase tax rates and decrease government spending.
c. Decrease tax rates and increase government spending.
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The federal budget is decided upon by the
A) President of the United States and the United States Treasury. B) the United States Treasury alone. C) President of the United States and the United States Congress. D) President of the United States and the Federal Reserve system. E) United States Congress and the Federal Reserve System.
In some countries, prices in stores are listed in terms of U.S. dollars, rather than in units of the local currency. That's most likely because
A) the country's political system is unstable. B) interest rates are higher using U.S. dollars than using the local currency. C) there is no other store of value. D) the country has experienced high rates of inflation.