The economy is in a recession. A congresswoman suggests increasing spending to stimulate aggregate demand and raising
Question:
The economy is in a recession. A congresswoman suggests increasing spending to stimulate aggregate demand and raising taxes simultaneously to pay for the increased spending. Her suggestion to combine higher government expenditures with higher taxes is:
a. the worst possible combination of tax and expenditure changes.
b. the best possible combination of tax and expenditure changes.
c. a mediocre and contradictory combination of tax and expenditure changes.
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The statement that raising government spending and taxes simultaneously is the worst possible combin...View the full answer
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Related Book For 
Macroeconomics
ISBN: 9781264112456
22nd Edition
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
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