Multiple Choice
A "conservative" would most likely argue in favor of
A) tax increases when fiscal stimulus is necessary, and spending cuts when fiscal restraint is necessary.
B) tax cuts when fiscal restraint is necessary, and spending cuts when fiscal stimulus is necessary.
C) tax cuts when fiscal stimulus is necessary, and spending cuts when fiscal restraint is necessary.
D) spending increases when fiscal expansion is necessary, and tax increases when fiscal stimulus is necessary.
Correct Answer:

Verified
Correct Answer:
Verified
Q42: The main idea behind supply-side tax cuts
Q43: A major complication with fiscal policy to
Q44: If the federal government increases the amount
Q45: Most tax payments increase as GDP increases.
Q46: Capital gains tax cuts inevitably benefit<br>A)low-income workers.<br>B)retired
Q48: If the MPC in the United States
Q49: You are a member of Congress in
Q50: Government transfer payments<br>A)are subtracted from national income
Q51: An active stabilization policy designed to limit
Q52: Ronald Reagan's presidency could be characterized as