In Both the Supply-Side View and the Demand-Side View of Fiscal

question 22

Multiple Choice

In both the supply-side view and the demand-side view of fiscal stimulus, tax cuts are _____, but the two views differ regarding:

• A) expansionary; the impact on the money supply.
• B) contractionary; the impact on the money supply.
• C) expansionary; why.
• D) contractionary; why.

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Definitions:

Endowments

Funds or property donated as a source of income, where the principal is typically kept intact in perpetuity or for a defined time period.

Investment Income

Refers to the money earned from various investments, including dividends, interest, or capital gains from securities, real estate, and other assets.

Not-for-profit Organization

An entity that operates for purposes other than generating profit, focusing on social, educational, charitable, or other activities.

Contribution Receivable

An amount pledged to be paid to a company or organization as a donation or investment, but which has not yet been received.