Which of the Following Policies Would a Keynesian Expect to Produce

question 71

Multiple Choice

Which of the following policies would a Keynesian expect to produce the largest increase in income?

• A)a reduction in government spending of $100 billion 
• B)an increase in transfer payments of $100 billion 
• C)an increase in government spending of $100 billion 
• D)a tax cut of $100 billion

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Definitions:

Manufacturing Cell

An arrangement of machinery and workers in which the production process is broken down into simpler steps, and all necessary equipment and staff are located close to each other to increase efficiency.

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product in the most efficient and streamlined way.

Continuous Process

A production process that operates incessantly over a long period of time, allowing for the constant production of goods or delivery of services.