Which of the Following Fiscal Policies Cause a Decrease in Aggregate

question 59

Multiple Choice

Which of the following fiscal policies cause a decrease in aggregate expenditures?

• A)An increase in transfer payments and an increase in government spending.
• B)An increase in transfer payments and a decrease in taxes.
• C)A decrease in taxes and an increase in government spending.
• D)An increase in taxes and a decrease in government spending.

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Definitions:

Flat Affect

A significant reduction in emotional expressiveness, including facial expressions, voice tone, or the lack of gestures, often associated with schizophrenia and some other psychiatric disorders.

Catatonia

A psychomotor disorder characterized by abnormal movement and behavior arising from a disturbed mental state.

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception, inappropriate actions and feelings, and a withdrawal from reality.

Expressionless Face

An expressionless face shows no emotion, movement, or indication of thoughts, making it difficult to gauge the person's feelings or reactions.