Which of the Following Individuals Would Most Likely Favor an Increase

question 192

Multiple Choice

Which of the following individuals would most likely favor an increase in government spending, as opposed to a tax cut, as the basis for expansionary fiscal policy?

• A)"There must be a constant philosophical prejudice against any intervention by the state into our lives, for by definition such intervention abridges liberty."-William Simon
• B)"The bastards [read politicians] can't spend what they don't have."-Howard Jarvis
• C)"The family that takes its mauve and cerise, air-conditioned, power-steered, power-braked automobile through cities that are badly paved, made hideous by litter, [and] blighted buildings...to picnic beside a polluted stream amid the stench of refuse may properly reflect on the curious unevenness of their blessings."-J.K.Galbraith
• D)"Public expenditures are made for the primary benefit of the middle class and financed with taxes on the poor and rich."-Director's Law

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Definitions:

Price Paid

The amount of money exchanged for a good or service.

Consumers

Individuals or groups that purchase goods and services for personal use.

Excise Tax

A specific tax levied on the sale or consumption of particular goods, such as alcohol, tobacco, and gasoline.

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services at all levels within a society.