16) Contractionary fiscal policy, other things being equal, will tend to:A) increase transfer payments B) increase government purchasesC) increase consumption taxes D) increase interest rates

As per general equilibrium models in contemporary macroeconomics, expansionary fiscal policy could…

Answered: ncrease transfer payments B) increase…

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ncrease transfer payments B) increase government purc ncrease consumption taxes D) increase interest rates

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 1.1P

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16) Contractionary fiscal policy, other things being equal, will tend to:
A) increase transfer payments B) increase government purchases
C) increase consumption taxes D) increase interest rates

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