Assume We Combine Restrictive Monetary Policy with Expansionary Fiscal Policy

question 24

Multiple Choice

Assume we combine restrictive monetary policy with expansionary fiscal policy.Which is most likely to occur?

• A)unemployment and interest rates will both go down
• B)unemployment will go down but interest rates will stay the same
• C)investment and consumption will both increase
• D)interest rates and the budget deficit will both decrease
• E)investment will decrease and the budget deficit will increase

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Definitions:

Volitional Phase

The stage of decision-making or behavior that involves conscious choice and willful effort.

Health Belief Model

A psychological model that explains and predicts health behaviors by focusing on the attitudes and beliefs of individuals regarding health issues.

Perceived Barriers

Obstacles that individuals believe exist between themselves and their goals, which can influence behavior and outcomes.

Perceived Susceptibility

An individual's belief or assessment about their risk of developing a health condition or disease.