Which of the Following Might Be Considered the Most Expansionary

question 68

Multiple Choice

Which of the following might be considered the most expansionary set of fiscal policies?  

• A) increase government purchases, increase taxes, and decrease transfer payments 
• B) decrease government purchases, increase taxes, and decrease transfer payments 
• C) increase government purchases, decrease taxes, and increase transfer payments 
• D) increase government purchases, increase taxes, and increase transfer payments

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Definitions:

Simple Regression

A statistical method for modeling the relationship between a single independent variable and a dependent variable by fitting a linear equation to observed data.

Multiple Regression

A statistical technique that models the relationship between a dependent variable and two or more independent variables by fitting a linear equation to observed data.

Regression Line

A line in regression analysis that best fits a set of data points, representing the predicted relationship between an independent variable and a dependent variable.

Slope

The measure of the steepness or angle of a line, representing the rate of change between two variables.