Which of the Following Policies Would a Keynesian Expect to Produce

question 123

Multiple Choice

Which of the following policies would a Keynesian expect to produce the largest decrease in income?

• A)a reduction in government spending of $100 billion 
• B)a decrease in transfer payments of $100 billion 
• C)an increase in government spending of $100 billion 
• D)a tax increase of $100 billion

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Definitions:

Survivability

The ability of a system, organization, or individual to remain alive or continue to function in the face of adversity or challenging conditions.

Viability

The ability of an entity or an idea to work successfully and sustainably, often in the context of business or environmental conservation.

Equality

The state of being equal, especially in status, rights, and opportunities.

Mutuality

A principle based on mutual interests, benefits, and cooperation between parties, often characterized by reciprocal actions.