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

question 91

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:

Embryonic Period

The stage of prenatal development from fertilization of the egg to the end of the eighth week, where major organs and structures begin to develop.

Teratogens

Environmental agents that can cause birth defects or developmental malformations if exposed to a fetus.

Prenatal Exposure

The exposure of an unborn child to substances, conditions, or behaviors that could affect development or health outcomes.

Cocaine

A powerful stimulant drug extracted from the leaves of the coca plant, often used recreationally and known for its potential for addiction.