A Contractionary Fiscal Policy Is Likely to

question 95

Multiple Choice

A contractionary fiscal policy is likely to

• A) increase government borrowing, thereby shifting the supply curve for bonds to the right.
• B) reduce government borrowing, thereby shifting the supply curve for bonds to the left.
• C) increase government borrowing, thereby shifting the demand curve for bonds to the right.
• D) reduce government borrowing, thereby shifting the demand curve for bonds to the left.

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Definitions:

Innate Biological Mechanism

A natural or inherent process within living organisms that contributes to the regulation of biological functions from birth.

Vocabulary

The set of words known and used by a person in a particular language.

Inner Speech

According to Vygotsky, the internalization of egocentric speech that occurs during early childhood and allows individuals to mentally plan activities and solve problems.

Collective Monologue

A form of speech in which children in a group talk but do not really engage or interact with each other, each one focused on their own narrative.