Which of the Following Would Increase GDP by the Greatest

question 100

Multiple Choice

Which of the following would increase GDP by the greatest amount?

• A)a $20 billion reduction in taxes
• B)$20 billion increases in both government spending and taxes
• C)$20 billion decreases in both government spending and taxes
• D)a $20 billion increase in government spending

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Definitions:

Liquidation

The process of converting assets into cash or cash equivalents by selling them on the open market.

Winding Up

The process of collecting and distributing the firm’s assets after a partnership or corporation has been dissolved.

Fiduciary Relationship

A relationship involving a high degree of trust and confidence.

Duties

Obligations that individuals or entities are required to perform, often under the law or by contract.