An Expansionary Fiscal Policy Can Be Partially Offset by A(n)

question 127

Multiple Choice

An expansionary fiscal policy can be partially offset by a(n) :

• A)increase in aggregate demand.
• B)increase in aggregate supply.
• C)depreciation of the dollar.
• D)decrease in net exports.

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Definitions:

Sustainability Damage

Negative impacts to the environment, society, or economy due to unsustainable practices or decisions.

Carbon Tax

A fee imposed on the burning of carbon-based fuels (coal, oil, gas) aimed at reducing the emission of greenhouse gases into the atmosphere.

Cap and Trade

An environmental policy tool that sets a limit (cap) on emissions and allows companies to trade (buy or sell) allowances that permit them to emit a certain amount of pollutants.

Tragedy of the Commons

A situation where individual users, acting independently according to their own self-interest, deplete or spoil shared resources, to the detriment of all users.