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You are watching: Expansionary fiscal policy is so named because it

Answer 27 D) is draft to increase real GDP. Other alternatives mentioned aren't in straight relation to expansionary fiscal plan Answer 29 A. They can be readily supplied in purchase goo…View the complete answer
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Transcribed image text: 27. Expansionary fiscal plan is for this reason named due to the fact that it: a. Requires an growth of the nation's money it is provided b. Necessarily increases the size of federal government c. Is aimed at achieving higher price stability. D. Is design to broaden real GDP 28. If your MPC (marginal propensity come consume) is.90, this means that you wil: spend nine-tenths of any type of increase in your disposable income. Conserve one -tenth of any type of level of disposable income. Break also when her disposable income is $9,000. Save nine-tenths of any type of level the disposable income. A. B. C. D. 29. Checkable deposits are classified together money because: a. They deserve to be readily provided in purchasing goods and also paying debts. B. Financial institutions hold currency equal come the worth of their checkable deposits. C. Castle are at some point the responsibilities of the Treasury. D. They knife interest revenue for the depositors 30. Various other things equal, if federal government purchases (G) boost by $100 billion and MPC aggregate demand will 0.9 a. Rise by $100 billion. B. Rise by less than $100 billion. C. Boost by an ext than $100 billion. D. Autumn by $100 exchange rate 31. I think that aggregate demand in the economic situation is excessive, bring about expansionary and inflation. I m sorry of the adhering to would it is in the most appropriate government fiscal policy? an increase in Federal earnings tax rates an increase in the dimension of revenue tax exemptions because that each dependent passage of legislation providing for the building of 8,000 brand-new school buildings a diminish in money supply a. B. C. D. 32. I think the MPC is .9. If government were to rise spending by $50 billion, aggregate demand would increase by: $1000 billion. $900 billion. $450 billion $500 billion. A. B. C. D. 33. I m sorry of the following represents contractionary budget policy? a. A $10 billion tax cut b. A $10 billion increase in govemment spending c. A $10 exchange rate tax increase d. A $10 billion open sector sale of bond 34. If the marginal propensity to consume is.9, climate the marginal propensity come save need to be: b. 0.1 C. 1.1 d. 0.9