Fiscal Restraint Is

question 121

Multiple Choice

Fiscal restraint is

• A)Tax hikes and/or spending cuts intended to reduce aggregate demand.
• B)Changes in taxes and spending intended to increase aggregate supply.
• C)Tax cuts or spending increases meant to reduce aggregate demand.
• D)Not possible because Congress continues to spend too much money.

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Definitions:

Sunk Costs

Expenses that have already been incurred and cannot be recovered, which should not influence future business decisions.

Subsequent Decision Making

Refers to the process of making decisions that follow an initial decision, taking into account the outcomes and new information that have emerged since the first decision.

Escalation Of Commitment

The phenomenon where people increase their investment in a decision despite new evidence suggesting it may be wrong or doomed.

Positive Decision

A decision-making outcome that is affirmative and constructive, often leading to beneficial results or resolutions.