Question: Assume the economy is at full employment and that investment spending declines dramatically the goal is to rest empleynt al pobry den OA an equality of tax receipts and goverment expenditures OB an excess of tax receipts over govemment expenditures C. an excess of government expenditures over tax receipts OD, a reduction of subsidies and transfer paymentsSee the answerSee the answerSee the answer done loading Show transcribed image textAnswer. A. This is incorrect that government fiscal policy should be directed toward an equality of tax receipts and government expenditure because the govt. Fiscal policy should be directed toward an excess govt. Spend…View the full answerTranscribed image text: Assume the economy is at full employment and that investment spending declines dramatically the goal is to rest empleynt al pobry den OA an equality of tax receipts and goverment expenditures OB an excess of tax receipts over govemment expenditures C. an excess of government expenditures over tax receipts OD, a reduction of subsidies and transfer payments and an increase in tax rates estion 11 Assume the economy is at full employment and that investment spending declines dramatically. If the goal is to restore tull employment, government fiscal policy should be directed toward OA an equality of tax receipts and government expenditures OB an excess of tax receipts over govemment expenditures Oc an excess of government expenditures over tax receipts Oo a reduction of subsidies and transfer payments and an increase in tax rates
