Multiple Choice
Figure 16-2
-Refer to Figure 16-2.In the graph above,if the economy is at point A,an appropriate fiscal policy by Congress and the president would be to
A) lower the discount rate of interest.
B) execute an open market sale of government securities.
C) increase government transfer payments.
D) increase marginal income tax rates.
Correct Answer:

Verified
Correct Answer:
Verified
Q3: The cyclically adjusted budget deficit calculates the
Q4: Accumulating debt poses a problem for the
Q5: The fastest growing category of government expenditure
Q6: Expansionary fiscal policy involves increasing government purchases
Q7: Since the Social Security system began in
Q9: Tax increases on business income decrease aggregate
Q10: Crowding out will be greater<br>A)the less sensitive
Q11: If government increases taxes by the same
Q12: If real GDP exceeded potential real GDP
Q13: If Congress and the president pursue an