Which of the Following Expansionary Fiscal Policy Changes Would Be

question 19

Multiple Choice

Which of the following expansionary fiscal policy changes would be most favored by those economists who think that the government is too large and inefficient?

• A) A $40 billion increase in government spending
• B) A $20 billion tax cut and $20 billion increase in government spending
• C) A $10 billion tax cut and $30 billion increase in government spending
• D) A $40 billion tax cut

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Definitions:

Balance Sheet

A financial overview presenting a business's total assets, current liabilities, and the equity portion of its shareholders on a designated day.

Assets

Resources owned by a company that have economic value and can provide future benefits, including cash, inventory, and equipment.

Equity

The value of ownership interest in a company, represented by the amount of assets minus liabilities.

Adjusting Entries

Entries made in accounting records at the end of an accounting period to update the balances of accounts in the preparation of financial statements.