Which of the following fiscal policy changes would be the most contractionary?
A. A $40 billion increase in taxes
B. A $10 billion increase in taxes and a $30 billion cut in government spending
C. A $20 billion increase in taxes and a $20 billion cut in government spending
D. A $30 billion increase in taxes and a $10 billion cut in government spending
B. A $10 billion increase in taxes and a $30 billion cut in government spending
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If Walmart issues $250 million in new stock to finance the renovation of their retail stores, this is an example of
A) a bond market transaction. B) indirect finance. C) a stock market transaction. D) direct finance.
Answer the question based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year
Refer to the above data. If year 2 is the base year, then the percentage increase in real GDP from year 2 to year 4 is:
A.
40 percent
B.
60 percent
C.
80 percent
D.
100 percent