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Keynesian Analysis Stresses That a Tax Cut That Increases the Government's

Question 1

Multiple Choice

Keynesian analysis stresses that a tax cut that increases the government's budget deficit (or reduces its budget surplus)


A) is appropriate during a period of inflation.
B) will increase the money supply.
C) will stimulate aggregate supply and, thereby, promote employment.
D) will stimulate aggregate demand and, thereby, promote employment.

Correct Answer:

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