Multiple Choice Questions

Contractionary fiscal policy includes decreasing government spending and increasing taxes to decrease aggregate demand.
  • What is an expansionary fiscal​ policy?
  • What is a fiscal policy?
  • The term​ "crowding out" refers to a situation​ where:
  • What is a contractionary fiscal​ policy?
Expansionary fiscal policy includes increasing government spending and decreasing taxes to increase aggregate demand.
  • What is a fiscal policy?
  • What is an expansionary fiscal​ policy?
  • The term​ "crowding out" refers to a situation​ where:
  • What is a contractionary fiscal​ policy?
Government spending increases interest rates and decreases private investment.
  • The term​ "crowding out" refers to a situation​ where:
  • Why might cutting government spending as a fiscal policy be a more difficult policy than the use of monetary policy to slow down an economy experiencing​ inflation?
  • Some spending and taxes increase or decrease with the business cycle. This event often has an effect on the economy that is similar to fiscal policy and is called
  • What is a contractionary fiscal​ policy?
The legislative process experiences longer delays than monetary policy.
  • Some spending and taxes increase or decrease with the business cycle. This event often has an effect on the economy that is similar to fiscal policy and is called
  • What is a contractionary fiscal​ policy?
  • The term​ "crowding out" refers to a situation​ where:
  • Why might cutting government spending as a fiscal policy be a more difficult policy than the use of monetary policy to slow down an economy experiencing​ inflation?
Fiscal policy can be described as changes in government spending and taxes to achieve macroeconomic policy objectives.
  • What is an expansionary fiscal​ policy?
  • What is a fiscal policy?
  • The term​ "crowding out" refers to a situation​ where:
  • What is a contractionary fiscal​ policy?
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Multiple Choice Questions
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