Keynesians and Non-Keynesians Would Largely Agree on Which One of the Following

question 133

Multiple Choice

Keynesians and non-Keynesians would largely agree on which one of the following statements?

• A) Expansionary fiscal policy will tend to substantially increase current real output.
• B) Proper timing of discretionary fiscal policy is difficult to achieve.
• C) The use of discretionary fiscal policy is an important stabilization tool.
• D) Market forces will automatically direct the economy toward full employment.

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Definitions:

Progressive

Referring to a tax system in which the tax rate increases as the taxable amount increases.

Circular 230

A set of regulations governing tax professionals issued by the United States Treasury Department.

Tax Preparers

Professionals skilled in preparing and filing tax returns on behalf of individuals and businesses to ensure compliance with tax laws.

Tax Rate Structure

The method or system by which taxes are levied on income, goods, services, and properties, which can be progressive, regressive, or proportional.