Assume You Would Like to Stimulate Investment but Leave the Level

question 29

Multiple Choice

Assume you would like to stimulate investment but leave the level of GDP roughly the same. What policy mix would you propose?

• A) an income tax cut combined with monetary expansion
• B) a tax cut combined with monetary restriction
• C) a cut in government spending combined with monetary expansion
• D) a cut in government spending combined with monetary restriction
• E) an investment subsidy combined with monetary expansion

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Definitions:

Breathing Process

The physiological process that involves the intake of oxygen and the expulsion of carbon dioxide from the respiratory system.

Circulatory System

The body's system responsible for the movement of blood and lymph, carrying nutrients and oxygen to cells while removing waste products.

Oxygen

A chemical element essential for life, commonly found in the Earth's atmosphere, and a key component of water and organic compounds.

Upper Respiratory System

The part of the respiratory system that includes the nose, nasal passages, pharynx, and larynx, involved in breathing and speech.