Which of the Following Fiscal Policy Changes Would Be the Most

question 164

Multiple Choice

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

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

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Definitions:

Standard Normal Distribution

A type of normal distribution where the mean is 0 and the standard deviation is 1, used in statistics for z-score calculations.

Variance

A statistical measurement of the dispersion or spread of a set of data points, indicating how much the individual data points differ from the mean.

Normally Distributed

Relates to a distribution that follows a normal distribution, with data symmetrically distributed around the mean.

Gasoline Prices

The cost per unit volume of gasoline, which can fluctuate based on several factors including crude oil prices, demand, taxes, and regulations.