In the Basic Keynesian Model,to Close an Expansionary Gap of $1

question 198

Multiple Choice

In the basic Keynesian model,to close an expansionary gap of $1 billion,taxes must be

• A) increased by $1 billion.
• B) decreased by $1 billion.
• C) increased by more than $1 billion.
• D) increased by less than $1 billion.
• E) decreased by less than $1 billion.

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Definitions:

Market Measures

Metrics and indices used to assess and compare the performance, risk, and valuation of stocks or securities within the financial market.

Price-Earnings

A ratio used to evaluate a company's stock price relative to its per-share earnings, indicating the value that investors put on a company's earning power.

Dividend Yield

Dividend yield is a financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue—the higher the number, the better the performance.