Expansionary Fiscal Policy Tends To

question 203

Multiple Choice

Expansionary fiscal policy tends to:

• A)reduce both U.S. interest rates and U.S. capital inflows.
• B)reduce U.S. interest rates but increase U.S. capital inflows.
• C)increase U.S. interest rates but reduce U.S. capital inflows.
• D)increase both U.S. interest rates and U.S. capital inflows.

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Definitions:

Arousal

A physiological and psychological state of being awake or reactive to stimuli, often associated with increased activity in the nervous system.

Task Performance

Refers to the effectiveness and efficiency with which an individual completes a given task or series of tasks.

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for action and stress responses, often referred to as the fight-or-flight response.

Fight-Or-Flight

A physiological reaction to perceived harmful events, attacks, or threats to survival, preparing the body to either confront or flee from the situation.