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    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: Using Policy to Stabilize the Economy
  5. Question
    Which of the Following Policies Would Be Advocated by Proponents
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Which of the Following Policies Would Be Advocated by Proponents

Question 19

Question 19

Multiple Choice

Which of the following policies would be advocated by proponents of stabilization policy when the economy is experiencing severe unemployment?


A) a decrease in the money supply
B) an increase in tax rates
C) an increase in government purchases
D) an increase in interest rates.

Correct Answer:

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