An Expansionary Fiscal Policy Is Likely to Be More Effective

question 32

Multiple Choice

An expansionary fiscal policy is likely to be more effective if:

• A) the government increases its spending on imports.
• B) the economy is running at its full employment level of output.
• C) the government increases its spending on locally produced goods and services.
• D) the government increases income tax rates.

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Definitions:

Special Product Pattern

Refers to algebraic identities that simplify the multiplication or factoring of certain algebraic expressions, such as the square of a binomial.

Closed Rectangular Box

A three-dimensional figure with six faces, all of which are rectangles, and all angles are right angles.

Polynomial Function

A mathematical expression involving a sum of powers in one or more variables, where the exponents are whole numbers and the coefficients are real numbers.

Area

The extent of a two-dimensional surface within a boundary.