According to the Keynesian View, Which of the Following Would

question 30

Multiple Choice

According to the Keynesian view, which of the following would most likely stimulate real output if an economy were in a recession?

• A) a decrease in tax rates
• B) an increase in tax rates
• C) a reduction in government expenditures
• D) a budget surplus

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Definitions:

Dividend Payment

A distribution of a portion of a company's earnings to its shareholders, usually in the form of cash or stock.

Dissociation

A process authorized under the Revised Uniform Partnership Act that takes place whenever a partner is no longer associated with the running of the partnership firm.

RUPA

The Revised Uniform Partnership Act, which provides a legal framework for the operation of partnerships within the United States.

Continuity of Existence

A business principle referring to the capacity of a company to maintain its operations and existence through changes in ownership or structure.