Which of the Following Is an Example of a Contractionary

question 181

Multiple Choice

Which of the following is an example of a contractionary fiscal policy?

• A) the Fed buying government securities in the open market
• B) the federal government decreasing the marginal tax rate on incomes below $200,000
• C) the federal government decreasing the amount of money spent on public health programs
• D) the federal government reducing pollution standards to allow firms to produce more output

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Definitions:

Sea Levels

The average height of the ocean's surface, used as a baseline in measuring land elevation and ocean depth.

Wet Deposition

The process by which pollutants are removed from the atmosphere and deposited on the Earth's surface via precipitation, like rain or snow.

Dry Deposition

The process by which pollutants in the air settle out onto surfaces, without the involvement of precipitation.

Nitrogen Oxides

Gaseous pollutants, including NO and NO2, produced from combustion processes, contributing to smog and acid rain.