Assume that the economy is booming, consumer spending is excessive, so that there is risk of demand-pull
Fantastic news! We've Found the answer you've been seeking!
Question:
Assume that the economy is booming, consumer spending is excessive, so that there is risk of demand-pull inflation. Which of the following would be most in accord with appropriate government fiscal policy?
Select one:
a. finance budget deficit by printing new money
b. an increase in Federal income tax rates and a cut in government spending
c. an increase in the size of income tax exemptions for each dependent
d. an increase in soil conservation subsidies to farmers and construction of new schools
Related Book For
Macroeconomics
ISBN: 9780132109994
1st Edition
Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty
Posted Date: