Which of the Following Policies Would a Keynesian Expect to Produce

question 71

Multiple Choice

Which of the following policies would a Keynesian expect to produce the largest increase in income?

• A)a reduction in government spending of $100 billion 
• B)an increase in transfer payments of $100 billion 
• C)an increase in government spending of $100 billion 
• D)a tax cut of $100 billion

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Definitions:

Insight

A sudden and often novel realization of the solution to a problem; it contrasts with strategy-based solutions.

Fixation

In psychology, a persistent focus of the id’s pleasure-seeking energies at an earlier stage of psychosexual development.

Sign Language

A form of communication that uses visual gestures and signs, as used by deaf and hard-of-hearing people.

Syntax

Syntax refers to the set of rules, principles, and processes that govern the structure of sentences in a language, including the arrangement of words and phrases to create meaningful sentences.