Figure 11-4 -According to Keynesian Analysis, Which of the Following Policy Combinations

question 11

Multiple Choice

Figure 11-4
-According to Keynesian analysis, which of the following policy combinations would most likely to move the economy illustrated in Figure 11-4 to full employment?

• A)increase both taxes and government transfer payments
• B)reduction in government purchases and increase in taxes
• C)increase in government purchases and reduction in taxes
• D)increase in taxes to reduce the government deficit

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Definitions:

Personal Property

Tangible, movable goods (chattels) and intangible claims (choses in action).

Chattels

Tangible, movable personal property that can be measured and weighed; also known as goods.

Fixtures

Items that are attached to a property in such a way that they become part of the property and cannot be removed without permission.

Continuing Guarantee

A provision in a guarantee allowing the creditor to advance further funds without affecting the obligation of the guarantor to pay in the event of default.