Which of the following fiscal policy actions is most likely to increase aggregate supply?
A. An increase in personal income tax rates.
B. A reduction in interest rates that encourages consumers to purchase more durable goods.
C. An increase in transfer payments to unemployed workers.
D. An increase in government spending on infrastructure that increases private sector
productivity.
D. An increase in government spending on infrastructure that increases private sector
productivity.
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When a country experiences capital flight, which of the following rise?
a. its real interest rate and its real exchange rate b. its real interest rate but not its real exchange rate c. its real exchange rate but not its real interest rate d. neither its real interest rate nor its foreign exchange rate
A stock that has a price of $20 per share, earnings per share of $2.00, and a dividend of $1.50 will have
A) a PE ratio of 20/1.50. B) a yield of 7.5 percent. C) a yield of 12 percent. D) a PE ratio of 1.333.