To Increase Demand in the Economy a Government Might

question 10

Multiple Choice

To increase demand in the economy a government might:

• A) Increase income tax
• B) Reduce government spending
• C) Increase tax on company profits
• D) Make it cheaper to borrow

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Definitions:

Overnight Bus

A transportation service that operates during nighttime hours, allowing passengers to travel long distances while sleeping.

Opportunity Cost

The value of the best alternative that must be foregone as a result of choosing another option.

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit.

Shutdown Decisions

Decision-making processes within a company regarding when to cease operations temporarily or permanently due to various reasons, such as unprofitability.