According to the Keynesian Model, Which of the Following Policies

question 9

Multiple Choice

According to the Keynesian model, which of the following policies would be most appropriate during a period of rapid inflation?

• A) a tax cut
• B) a budget deficit
• C) a budget surplus
• D) an increase in the money supply

---

Definitions:

After-Tax Net

The net income of an individual or business after all taxes have been deducted, representing the amount of money actually available for spending or investment.

Corporate Tax

A tax imposed on the net income or profit of corporations and other businesses.

Unlevered Firm

A company that operates without any debt in its capital structure, relying entirely on equity for financing.

Annual Coupon

The total interest payments received by a bondholder from the issuer each year.