Question
91. Keynesian theory says stimulate by lowering taxes. But what do you think a typical worker, given a thousand-dollar tax break during a major recession,
91. Keynesian theory says stimulate by lowering taxes. But what do you think a typical worker, given a thousand-dollar tax break during a major recession, will likely do with it? The best answer to this rhetorical question is
divide it equally between spending and saving
spend most of it and save the rest
save most of it and spend the rest
use it as a down payment on a house
92. In a recent interview the central bank Governor said that the paring back of inventories should .. This clipping is best completed with
Worsen the recession but lead eventually to an economic recovery
Worsen the recession and kill any future recovery
Push us out of recession and maintain an economic recovery
Push us out of recession temporarily but lead eventually to a long-term recession.
93. Businesses are quickly moving to cut inventory levels, a key development. Cutting inventory levels will 28
Push the economy toward recession.
Stimulate the economy.
Complement fiscal policy.
Make firms more efficient
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