If the Government Increases Its Spending During Recession to Assist

question 41

Multiple Choice

If the government increases its spending during recession to assist the economy, the funds for such expenditures must come from some source.Which of the following sources would be the most expansionary?

• A)additional taxes on personal incomes
• B)creating new money
• C)borrowing from the public
• D)additional taxes upon corporate profits

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Definitions:

Implicit Assumption

An unspoken premise or belief that underlies an argument or decision, often taken for granted without explicit statement.

Equivalent Level

A position, status, or degree that is equal in value, rank, or importance to another.

Not Interchangeable

Items or concepts that cannot be substituted for one another because of distinct differences.

Group's Performance

A measure of how effectively a group works together to achieve common goals.