Multiple Choice
Expansionary fiscal policy would involve ________,whereas contractionary fiscal policy would involve ________.
A) increasing the money supply; increasing personal income taxes
B) increasing corporate income taxes; raising interest rates
C) increasing transfer payments; increasing corporate income taxes
D) increasing government purchases; increasing transfer payments
Correct Answer:

Verified
Correct Answer:
Verified
Q2: If the MPC is 0.8 and the
Q3: Figure 13.1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4177/.jpg" alt="Figure 13.1
Q4: If the government is running a cyclically
Q5: Figure 13.1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4177/.jpg" alt="Figure 13.1
Q6: C = $750 + 0.75(1 - 0.4)Y<br>I
Q7: Other things equal,an increase in corporate income
Q8: Suppose the economy is initially at full
Q9: Suppose you are paid a wage of
Q10: C = $5 million + 0.9(1 -
Q11: Assume the economy is initially in equilibrium