Which of the Following Policy Alternatives Would Be an Appropriate

question 43

Multiple Choice

Which of the following policy alternatives would be an appropriate response to a sharp increase in investment spending,assuming policymakers want to stabilize output?

• A)increase taxes
• B)increase the money supply
• C)increase government expenditures
• D)All of the above are correct.

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Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to increase the number of shares outstanding while maintaining the same total market value.

Market Value

The existing cost for buying or selling an asset or service in the open market.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to increase liquidity without changing the shareholders' equity.

Par Value

The nominal or face value of a stock or bond as assigned by the issuing company, which may bear no relation to its market value.