The Desired Fiscal Restraint Is Equal to

question 73

Multiple Choice

The desired fiscal restraint is equal to

• A)Excess AD times the multiplier.
• B)Excess AD divided by the multiplier.
• C)Desired AD reduction.
• D)GDP gap divided by the multiplier.

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Definitions:

Economic Entity

An organization or unit in society that has the ability to conduct economic activities, such as businesses or governments.

Indirect Non-Controlling Interest

A stake in a company held through another holding, offering a non-direct route of control or influence over the business operations of the subsidiary.

Subsidiary

A company that is fully or partly owned and wholly controlled by another company, which is referred to as the parent company.

Shares

Units of ownership interest in a corporation or financial asset, representing a portion of the corporation's equity.