A Fiscal Policy Action to Close an Expansionary Gap Is

question 27

Multiple Choice

A fiscal policy action to close an expansionary gap is to:

• A)increase taxes.
• B)increase transfer payments.
• C)increase government purchases.
• D)increase the marginal propensity to consume.

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Definitions:

Wealthy Investors

refers to individuals or entities that possess a significant amount of capital, often qualifying for exclusive investment opportunities and services.

Private Partnerships

A business organization owned by two or more individuals who share management and profits or losses.

Arbitrage Profit

Earnings generated by exploiting the price differences of identical or similar financial instruments on different markets or in different forms.

Oil Futures

Oil futures are contracts to buy or sell oil at a predetermined price on a specified future date, used for hedging or speculation on oil price movements.