Expansionary Fiscal Policy Actions Include __________ Government Spending And/or __________

question 54

Multiple Choice

Expansionary fiscal policy actions include __________ government spending and/or __________ taxes,while contractionary fiscal policy actions include __________ government spending and/or __________ taxes.

• A) increasing; increasing; decreasing; decreasing
• B) decreasing; decreasing; increasing; increasing
• C) increasing; decreasing; increasing; decreasing
• D) decreasing; increasing; increasing; decreasing
• E) increasing; decreasing; decreasing; increasing

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Definitions:

Current Maturities

The portion of long-term debt that is due to be paid within the next year.

Conversion Privileges

Options embedded in financial instruments that allow the holder to change the instrument into another, typically from a bond to stock.

Interest Rates

The percentage of a sum of money charged for its use, determined by the lender and agreed upon by the borrower.

Earnings Per Share

A company's net profit divided by the number of its outstanding shares, indicating how much money each share makes.