Use the Figure Below to Answer the Following Question(s)

question 58

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 11-3
-Refer to Figure 11-3. If the economy is currently operating at point a, which of the following would a Keynesian economist be most likely to favor?

• A)a tax cut
• B)an increase in government expenditures
• C)a shift to a more expansionary monetary policy
• D)a reduction in the budget deficit

---

Definitions:

Security Deposit

A sum paid upfront as security against damage or non-payment, often used in rental agreements.

Rental Property

Real estate property that is leased or rented out to tenants, generating income for the property owner.

Rental Income

Income received from renting out property or real estate, which is typically subject to income tax.

Schedule C

A form used by sole proprietors to report their business income and expenses to the IRS.