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:

Job Opportunity

An available position of employment where an individual has the chance to apply for work that matches their skills and interests.

Approaching

The act of coming near or closer to something or someone in physical space or time.

Milgram Study

A psychological experiment conducted by Stanley Milgram which measured the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, often as a result of real or imagined group pressure.