If the Government Wants to Run an Expansionary Fiscal Policy

question 68

Multiple Choice

If the government wants to run an expansionary fiscal policy by increasing consumption, the best alternative is likely to be:

• A) an income tax cut.
• B) a company tax cut.
• C) an income tax rise.
• D) a company tax rise.

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Definitions:

Add

To combine one or more numbers or quantities to get a sum or total.

Inference Forms

Logical structures that guide the transition from premises to conclusions in reasoning.

MP

Member of Parliament, an individual elected to represent a geographic area in the parliament.

Behavioral Genetics

Quantitative study of relative hereditary and environmental influences on behavior.