Which Set of Fiscal Policies Would Tend to Offset Each

question 65

Multiple Choice

Which set of fiscal policies would tend to offset each other?

• A)a decrease in government spending and taxes
• B)a decrease in government spending and no change in taxes
• C)an increase in government spending and a decrease in taxes
• D)a decrease in government spending and an increase in taxes

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Definitions:

Purpose

The reason for which something is done or created or for which something exists.

Iphigenia

A figure in Greek mythology, daughter of Agamemnon, whose story varies but is often associated with sacrifice for divine favor in war.

Agamemnon

A mythical king of Mycenae who was a central figure in the Trojan War, leading the Greek forces in the epic struggle documented in Homer's Iliad.

Trojan War

A significant conflict in Greek mythology that was fought between the city of Troy and the Greeks, sparked by the abduction of Queen Helen.