If Congress votes to increase government purchases and at the same time decrease personal income taxes, they
a. have decided to balance the federal budget.
b. have voted for the proper policy to counteract a recessionary gap.
c. have voted for the proper policy to counteract an inflationary gap.
d. are trying to achieve a federal budget surplus.
b
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Discuss how the marginal propensity to consume, imports, and marginal tax rates influence the expenditure multiplier
What will be an ideal response?
According to the special interest theory, the licensing of beauticians would be
a. desired by consumers in order to promote the public interest b. desired by beauticians in order to promote the public interest c. discouraged by all beauty salons, large or small d. desired by some beauticians in order to restrict entry into their profession e. done strictly at the initiative of the government