Keynesian analysis stresses that a tax cut that increases the government's budget deficit (or reduces its budget surplus)
a. is appropriate during a period of inflation.
b. will increase the money supply.
c. will stimulate aggregate supply and, thereby, promote employment.
d. will stimulate aggregate demand and, thereby, promote employment.
D
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The opportunity cost of an apartment in a rent controlled market is equal to
A) the rent charged for the apartment. B) the opportunity cost of searching for the apartment. C) the rent charged for the apartment plus the opportunity cost of searching for the apartment. D) nothing because of the surplus of apartments when there are rent controls. E) the rent charged for the apartment minus the opportunity cost of searching for the apartment.
The demand curve is downward sloping because
A) the price must rise to induce firms to increase quantity supplied. B) a reduction in the price of a good causes individuals to increase their purchase of that good. C) an increase in the price will cause a leftward shift in the demand curve. D) all of the above.