Multiple Choice
Suppose the economy is in a recession. To increase demand using discretionary fiscal policy, the government can
A) raise interest rates.
B) raise taxes or reduce government spending.
C) increase government spending or reduce taxes.
D) reduce interest rates.
Correct Answer:

Verified
Correct Answer:
Verified
Q32: An automatic stabilizer<br>A) injects money into the
Q33: Taxes constitute the removal of income from
Q34: Explain how the progressive tax system and
Q35: Automatic stabilizers are<br>A) aspects of the tax
Q36: Annually balancing the federal budget has been
Q38: The proposition that federal expenditures and taxes
Q39: The progressive income tax and transfer payments
Q40: _ spending is the part of the
Q41: If the government borrows from the public,
Q42: Automatic stabilizers include all of these EXCEPT<br>A)