A Conservative Who Was Opposed to an Increase in the Size

question 91

Multiple Choice

A conservative who was opposed to an increase in the size of the government sector but believed in the Keynesian approach to aggregate demand management would most likely favor which of the following expansionary policies?

• A)increase taxes 
• B)decrease taxes 
• C)increase government spending 
• D)decrease government spending

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Definitions:

Commercial Banking System

A network of financial institutions that accept deposits, offer loans, and provide other financial services to the public and businesses.

Deposits with the Fed

Funds that commercial banks and other financial institutions place in their accounts with the Federal Reserve.

U.S. Government Securities

Financial instruments issued by the U.S. government to raise funds, including Treasury bonds, bills, and notes, considered low-risk investments.

Money Supply

The summed up worth of financial assets accessible in an economy at a specific moment.