The economy is in a recessionary gap and there is complete crowding out. Furthermore, there is no evidence that the economy is in a liquidity trap or that investment is interest-insensitive. This makes the case for the use of __________ policy stronger than it might be otherwise
A) contractionary monetary
B) contractionary fiscal
C) expansionary fiscal
D) expansionary monetary
D
Economics
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What does the slope of the line shown in the above figure equal?
What will be an ideal response?
Economics
A permanent tax cut would likely ________ consumption spending ________ than would a tax rebate like the one issued in 2008
A) decrease; more B) increase; less C) increase; more D) decrease; less
Economics