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When the Federal government cuts taxes and increases spending to stimulate the economy during a period of recession, such actions are design to be:

A.

Passive

B.

Automatic

C

Countercyclical

D.

Nondiscretionary

23.

Fiscal policy is enacted through changes in:

A.

Interest rates and the price level

B.

The supply of money and foreign exchange

C.

Unemployment and inflation

D.

Taxation and government spending

24.

The intent of contractionary fiscal policy is to:

A.

Increase aggregate demand

B.

Decrease aggregate demand

C.

Increase aggregate supply

D.

Decrease aggregate supply

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