According to Keynesian Theory,the Correct Fiscal Policy to Stimulate the Economy

question 99

Multiple Choice

According to Keynesian theory,the correct fiscal policy to stimulate the economy would be to

• A)Raise taxes to increase aggregate demand.
• B)Increase the money supply to increase aggregate supply.
• C)Increase government expenditures to increase aggregate demand.
• D)Lower taxes to increase aggregate supply.

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Definitions:

One-Line Method

A consolidation technique, often used in accounting for investments, where only the net income and not the detailed financial activities of an affiliate are included in the parent company's financial statements.

Jointly Controlled Operations

Business activities where control and management responsibilities are shared among two or more parties, often under a joint venture agreement.

Disclosure

The act of making financial information known to the public, typically through financial statements and other official reports, ensuring transparency and accountability.

Unrealised Profits

Earnings generated on paper from investments or sales yet to be finalized through actual transaction or cash exchange.