Which of the Following Fiscal Policy Changes Would Be the Most

question 250

Multiple Choice

Which of the following fiscal policy changes would be the most contractionary?

• A)a $40 billion increase in taxes
• B)a $10 billion increase in taxes and a $30 billion cut in government spending
• C)a $20 billion increase in taxes and a $20 billion cut in government spending
• D)a $30 billion increase in taxes and a $10 billion cut in government spending

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