Which of the Following Fiscal Policy Actions Is Most Likely

question 241

Multiple Choice

Which of the following fiscal policy actions is most likely to increase aggregate supply?

• A)an increase in personal income tax rates
• B)a reduction in interest rates that encourages consumers to purchase more durable goods
• C)an increase in transfer payments to unemployed workers
• D)an increase in government spending on infrastructure that increases private sector productivity

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Definitions:

Monopolist

An individual or entity that holds a monopoly in a market, being the sole provider of a particular product or service, facing no direct competition.

Geographic Location

The specific physical positioning or area of an entity on the Earth's surface.

Price Discrimination

The strategy of selling the same product to different buyers at different prices based on buyers' willingness to pay, not differences in production costs.

G-rated Movies

Films that are deemed suitable for all audiences, including children, by the Motion Picture Association.