High School

Which of the following examples would support the goals of macroeconomic policy? Select the correct answer below:

A. A policy that reduces payroll taxes with the intention of creating jobs.
B. An increase in government spending with the intention of stimulating economic growth.
C. An increase in the money supply, which results in a lower interest rate.
D. All of the above.

Answer :

Final answer:

All of the examples provided would support the goals of macroeconomic policy by either creating jobs, stimulating economic growth, or lowering interest rates.

Explanation:

Of the options provided, all of the above examples would support the goals of macroeconomic policy. A policy that reduces payroll taxes can create jobs by lowering the cost of labor for businesses. An increase in government spending can stimulate economic growth by injecting money into the economy. An increase in money supply can lead to a lower interest rate, making borrowing cheaper and encouraging investment.

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