If the Government Uses Fiscal Policy to Close a Recessionary

question 121

Multiple Choice

If the government uses fiscal policy to close a recessionary gap, government

• A)expenditure must be increased by more than the gap because of the government expenditure multiplier.
• B)taxes can be raised by less than the gap because of the tax multiplier.
• C)taxes must be cut by more than the gap because of the tax multiplier.
• D)taxes must be raised by more than the gap because of the tax multiplier.
• E)expenditure can be increased by less than the gap because of the government expenditure multiplier.

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Definitions:

Marketing Plan

A comprehensive document or blueprint that outlines a company’s advertising and marketing efforts for the coming period, detailing strategies for reaching target markets.

Financial Ratios

Quantitative measures derived from financial statement analysis used to gauge a company's performance, liquidity, leverage, and profitability.

Marketing Metrics

Quantitative measures used by marketers to evaluate, compare, and track the effectiveness or performance of marketing strategies, campaigns, or activities.

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A security or management concept ensuring that the base assumptions underlying strategies or plans remain valid over time and are monitored for changes.