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which of the following refers to taxes and spending by the government?
 
 

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Deepika Mirchandani
Deepika MirchandaniLv5
11 Sep 2020
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Related questions

Fiscal policy refers to the:

A. manipulation of government spending and taxes to stabilize domestic output, employment, and the price level.

B. manipulation of government spending and taxes to achieve greater equality in the distribution of income.

C. altering of the interest rate to change aggregate demand.

D. fact that equal increases in government spending and taxation will be contractionary.

Discretionary fiscal policy refers to changes in:

a. government spending or taxes made by the President on Twitter.

b. money supply and interest rates made by the President.

c. taxes and transfers that occur automatically as GDP changes.

d. taxes and government expenditures made by Congress to stabilize the economy.

Crowding out refers to the situation in which:

a. government spending increases interest rates and firms invest less.

b. foreigners sell their bonds to buy domestic goods and services

c. government borrowing leads to an increase in taxes

d. An increase in taxes causes people to consume less.

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