If the Government Uses Fiscal Policy to Close a Recessionary

question 209

Multiple Choice

If the government uses fiscal policy to close a recessionary gap,government

• A)expenditure must be increased by more than the gap because of the government expenditure multiplier.
• B)taxes must be cut by more than the gap because of the tax multiplier.
• C)expenditure can be increased by less than the gap because of the government expenditure multiplier.
• D)taxes can be raised by less than the gap because of the tax multiplier.
• E)taxes must be raised by more than the gap because of the tax multiplier.

---

Definitions:

Aqueous Solution

A solution in which water is the solvent.

pH

A measure of the acidity or alkalinity of a solution, defined as the negative logarithm of the hydrogen ion concentration.

Alanine

A non-essential amino acid used in protein synthesis, involved in glucose metabolism and immune system function.

Fischer Projection

A method to represent molecules in 2D by projecting three-dimensional configurations.