Fiscal policy analysis indicates that large tax increases during a severe recession will result in
a. an increase in the incentive to earn and the maintenance of a balanced federal budget.
b. higher tax revenues and an expansion in government spending.
c. smaller budget deficits, which will speed an economic recovery.
d. a reduction in aggregate demand and a worsening of the recession.
D
Economics
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Buyers always prefer lower prices to higher prices
Indicate whether the statement is true or false
Economics