Fiscal Restraint Is Defined as

question 51

Multiple Choice

Fiscal restraint is defined as

• A)Tax hikes or spending cuts intended to reduce aggregate demand.
• B)Tax hikes or spending cuts intended to increase aggregate demand.
• C)Tax cuts or spending hikes intended to increase aggregate demand.
• D)Tax cuts or spending hikes intended to reduce aggregate demand.

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Definitions:

Gross Domestic Product

The total market value of all final goods and services produced within a country in a given period.

Money Supply

The aggregate quantity of all forms of money, including cash and bank deposits, circulating within an economy.

Interest Rates

The cost of borrowing money or the return on investment, typically expressed as a percentage.

Aggregate Demand

The full scope of demand for products and services in an economy, gauged at a specified price level across a specific duration.