Multiple Choice
What set of fiscal policies could the government use to close an expansionary gap?
A) decrease taxes, increase government purchases, and increase transfer payments
B) increase taxes, increase government purchases, and increase transfer payments
C) increase taxes, increase transfer payments, and decrease government purchases
D) increase taxes, decrease transfer payments, and decrease government purchases
Correct Answer:

Verified
Correct Answer:
Verified
Q6: Suppose autonomous net taxes equal $1 trillion
Q7: What are most government transfer programs known
Q8: What was the amount of federal government
Q9: What is the effect of automatic stabilizers
Q10: Which of the following had the most
Q12: The Canadian federal income tax is progressive.What
Q13: What is fiscal policy concerned with? <br>A) only
Q14: Suppose the net taxes on the quantity
Q15: Suppose autonomous net taxes increase by $200
Q16: What tools are used in fiscal policy?