Suppose There Are Two Policy Options Facing a Vote in Parliament.In

question 89

Multiple Choice

Suppose there are two policy options facing a vote in Parliament.In the first,government spending will increase $50 billion,while the second option is to cut taxes by $50 billion.A Keynesian economist would argue for

• A)the tax option because it also affects the incentives workers face.Long-run aggregate supply will increase with the tax cut,but not with the spending increase.
• B)the tax option because it is easier to pass.The effects on total spending would be identical.
• C)the spending option because it won't affect the deficit the way the tax cut would.
• D)the spending option because it has a bigger impact on total spending.The spending directly raises total spending plus it works through the multiplier,while the tax cut only works through the multiplier.

---

Definitions:

Real Property

Land and anything permanently attached to it, such as buildings and structures, distinct from personal property or movable possessions.

Tenancy

General term indicating a possessory interest in property. In landlord–tenant law, a property owner’s conveyance to another person of the right to possess the property exclusively for a period of time.

Estate

All the money, property, and assets owned by an individual at the time of their death, which may be subject to probate and taxation.

Ownership Interest

Refers to the rights and claims that an individual or entity has over a property or asset, demonstrating a stake or share in its value.