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:

Standards

Established norms or criteria against which quality or performance is measured.

Numbers

Symbols or words used to represent quantities, allowing for counting, measuring, and calculating.

Exception

A case that does not follow the general rule or is different from what is usually found or expected.

Standards

Established norms or criteria that define the expected level of quality or performance.