Which fiscal policy would be the most expansionary

Assignment Help Business Economics

Reference no: EM131172393

Which fiscal policy would be the most expansionary? A. A $40 billion increase in government spending B. A $20 billion tax cut and $20 billion increase in government spending C. A $10 billion tax cut and $30 billion increase in government spending D. A $40 billion tax cut

Reference no: EM131172393

Questions Cloud

About keynesian economics and fiscal policy : The event that changed many economistsí beliefs about economic equilibrium was: Which of the following will not shift the consumption function? According to classical economists, in times of unemployment the most appropriate counter cyclical, or stab..

Assume the current price of good-equilibrating process : Assume the current price of good X is too high (it is above the equilibrium price). In your own words, describe the equilibrating process that would take place in this market.

Generalized demand and supply functions for good : The generalized demand and supply functions for good X are Qxd = 100 – 2PX + 0.01M + 8 PY - 4Pz Qxs = 50 + 3PX – 6PI + PT Where Qxd = quantity demanded of good X Px = price of good X M = consumer income PY = price of good Y Pz= price of good Z Qxs = ..

Purchases its resources in purely competitive markets : Assume a firm both sells its products and purchases its resources in purely competitive markets. Under the above assumption, state the criterion (necessary and sufficient condition) for a firm to employ its resources in such a manner as to minimize i..

Which fiscal policy would be the most expansionary : Which fiscal policy would be the most expansionary?

Comparing the actual physical volume of production : Which of the following represents an argument in support of comparing the market value of the total output in various years, rather than comparing the actual physical volume of production?

Describe relationship between mortgage rates and inflation : Home mortgage rates have fallen to all time low recently while inflation has been relatively low as well, though low mortgage rates and low inflation do not always coincide. Describe a relationship between mortgage rates and inflation that would make..

Interested in the social-political and cultural factors : Political scientists are interested in the social, political, and cultural factors that lead the country to choose one policy direction over another. You learned about several theories that political scientists use to explain who has the power in pol..

The generalized demand and supply functions for good : The generalized demand and supply functions for good X are Qxd = 100 – 2PX + 0.01M + 8 PY - 4Pz Qxs = 50 + 3PX – 6PI + PT Where Qxd = quantity demanded of good X Px = price of good X M = consumer income PY = price of good Y Pz= price of good Z Qxs = ..

User Account

All Pages