To Close a Recessionary Gap Using Fiscal Policy,the Government Can

question 37

Multiple Choice

To close a recessionary gap using fiscal policy,the government can:

• A)increase government spending by the size of the gap.
• B)decrease government spending by the size of the gap.
• C)increase government spending by more than the size of the gap.
• D)increase government spending by less than the size of the gap.
• E)decrease government spending by more than the size of the gap.

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Definitions:

Personal Check

A hand-written document that orders a bank to pay a specific amount of money from the writer's account to another party.

Checking Account

A bank account that allows for frequent transactions, including deposits, withdrawals, and check payments.

Checking Account

A bank account that allows for numerous withdrawals and deposits, making it ideal for daily transactions.

Bank Account

A financial account maintained by a bank or other financial institution in which the financial transactions between a customer and the bank are recorded.