If a "liberal" wanted to increase aggregate demand, which of the following would she tend to favor?
a. An increase in government spending, because it will increase the size of the public sector.
b. A decrease in transfer payments, because it keeps the public sector small.
c. An increase in transfer payments, because it has a larger multiplier than tax changes.
d. A decrease in taxes, because it makes the public sector smaller.
a
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Assume a small nation has the following statistics: its consumption expenditure is $15 million, investment is $2 million, government purchases of goods and services is $1 million, exports of goods and services to foreigners is $1 million, and imports
of goods and services from foreigners is $1.5 million. Calculate this nation's GDP.
Ceteris paribus, a rise in interest rates in the United States will cause the yen price of the dollar in international exchange markets to ________. I.e., the dollar ________ in value against the yen
A) increase; depreciates B) decrease; depreciates C) decrease; appreciates D) increase; appreciates