Expansionary Fiscal Policy Will Produce Inflation Only If

question 12

Multiple Choice

Expansionary fiscal policy will produce inflation only if

• A)it takes the form of a cut in personal income taxes.
• B)it takes the form of a cut in corporate profit taxes.
• C)it takes the form of an increase in government spending.
• D)it is accompanied by a sustained increase in the money supply.

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Definitions:

Computerized Axial Tomography

An advanced imaging procedure that uses X-rays and computer processing to create cross-sectional images of the body, also known as a CT scan.

Magnetic Resonance Imaging

An imaging test that uses a magnetic field and radio waves to create detailed images of the organs and tissues within the body.

Radiation Absorbed Dose

A unit of measurement for the amount of radiation energy absorbed by a mass of material, typically tissue.

CT

Computed Tomography, an imaging procedure that uses special x-ray equipment to create detailed pictures, or scans, of areas inside the body.