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A Contractionary Fiscal Policy

question 160

Multiple Choice

A contractionary fiscal policy
I. decreases a government budget deficit or increases a government budget surplus.
II. includes tax cuts.
III. may include discretionary cuts in transfer payments.


Definitions:

Engine Idling

The operation of an engine running at low speed while the vehicle is stationary.

Catalytic Converter Operation

The process by which a catalytic converter reduces harmful emissions from an engine's exhaust, by catalyzing a redox reaction that transforms pollutants into less harmful substances.

Fuel Delivery Control

The system or method used in managing the flow of fuel to an engine, ensuring the correct air-fuel mixture for optimal performance and efficiency.

Exhaust Gas Recirculation

A method to reduce nitrogen oxide emissions in petrol/gasoline and diesel engines by recirculating a portion of an engine's exhaust gas back to the engine cylinders.

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