According to the Keynesian Model, Which of the Following Policies

question 9

Multiple Choice

According to the Keynesian model, which of the following policies would be most appropriate during a period of rapid inflation?

• A) a tax cut
• B) a budget deficit
• C) a budget surplus
• D) an increase in the money supply

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Definitions:

Criteria Evaluation

The process of assessing something based on a set of standards or benchmarks to make a judgment or decision.

Yardstick Approach

A method of evaluation that involves comparing a current situation or performance against a standard measure or "yardstick."

Logical Arguments

Reasoning that follows a clear, structured line of thought, typically leading from premises to a conclusion.

Benchmarks

Standard points of reference against which things may be compared or assessed.