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:

Puritans

A group of English Reformed Protestants in the 16th and 17th centuries who sought to "purify" the Church of England from its "Catholic" practices.

Household

A social unit consisting of those living together in the same dwelling, typically a family or group of roommates.

Separation Of Church And State

The principle that government institutions and religious institutions should function independently without interference from each other.

Puritans

A group of English Protestants in the 16th and 17th centuries who sought to "purify" the Church of England from its Catholic practices, advocating for simpler forms of worship and governance.