Homework Answers
Option C is the correct answer for the above question
Because, economy is in recession mean country does not have liquid cash or money. At that time starting additional projects is not the correct thing.
It is A. a income tax would give family's less (DI) income that they can spend. therefore it would casue the reccession to continue. all the other tree options help the economy grow by putting money into the economy. Government spending would increase employment which in return would allow more people to spend which would help a ecomony getting out of a reccession.
Correct Answer (C.) This analysis is doubly important because infrastructure projects are attractive to politicians because of financial incentives. The huge construction sites created by infrastructure spending are a visible reminder to voters that the government is working to overcome the crisis. This means that interested citizens need to be aware of the strengths and weaknesses of infrastructure as a form of incentive, as politicians may reject it because of its strength as a political signal.
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All of the following actions by the federal government would be effective in combating an economic...
Classify the actions below as either discretionary spending or an automatic stabilizer. Place each item into...
Classify the actions below as either discretionary spending or an automatic stabilizer. Place each item into one of the two bins. The president implements cuts in government spending in order to balance the budget A law is enacted that increases The government cuts taxes to Medicare coverage stimulate consumer spending The government increases tax rates to prevent inflation A reduction in tax revenue that results from a recession reducing personal income and corporate profits An increased number of layoffs Economic...
1 pts D Question 9 Let's assume that the economy is experiencing a recession. A government...
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1. To stimulate economic activity during a severe recession, the strongest appropriate fiscal policy is: a....
1. To stimulate economic activity during a severe recession, the strongest appropriate fiscal policy is: a. an increase in taxes and/or an increase in government spending b. an increase in taxes and/or a decrease in government spending! c. a decrease in taxes and/or an increase in government spending d. a decrease in taxes and/or a decrease in government spending e. a decrease in government purchases and/or a decrease in transfer payments 2. An increase in income tax rates: a. makes...
What is crowding out? O a reduction in consumption and investment spending that results from government...
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The United States loses 2 million jobs over a two-year period. The federal government’s income tax...
The United States loses 2 million jobs over a two-year period. The federal government’s income tax revenues decline as a result, and the economy begins to go into a downturn. Which action describes a Keynesian response to this scenario? A Lower taxes on the middle class and expand government transportation projects. B Sell a large amount of bonds to increase government spending. C Raise taxes on corporate profits, and cut social welfare spending. D Reduce interest rates on government loans...
1. In the beginning of 2017, the U.S. government predicted that economic growth would rise by...
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A central back engages in tight monetary policy in order to prevent inflation from undermining economic...
A central back engages in tight monetary policy in order to prevent inflation from undermining economic growth. Shift the aggregate demand (AD) curve on the graph below to show the impact of this policy on the economy. Provide your answer below: Price Level Aggregate Supply Aggregate Demand Real GDP QUESTION 25 - 1 POINT A healthy economic climate usually involves some sort of market orientation at the making level. individual, or firm decision- Select the correct answer below: O macroeconomic...
Classify the actions below as either discretionary spending or an automatic stabilizer. Place each item into one of the two bins. The president implements cuts in government spending in order to balance the budget A law is enacted that increases The government cuts taxes to Medicare coverage stimulate consumer spending The government increases tax rates to prevent inflation A reduction in tax revenue that results from a recession reducing personal income and corporate profits An increased number of layoffs Economic...
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1. To stimulate economic activity during a severe recession, the strongest appropriate fiscal policy is: a. an increase in taxes and/or an increase in government spending b. an increase in taxes and/or a decrease in government spending! c. a decrease in taxes and/or an increase in government spending d. a decrease in taxes and/or a decrease in government spending e. a decrease in government purchases and/or a decrease in transfer payments 2. An increase in income tax rates: a. makes...
What is crowding out? O a reduction in consumption and investment spending that results from government borrowing O a reduction in consumption and investment spending that results from increased international trade O a reduction in government borrowing resulting from increases in consumption and investment spending O a reduction in investment, but not consumption, that results from government borrowing O a reduction in consumption, but not investment, that results from government borrowing are a mechanism by which crowding out occurs. OIncreases...
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