Which of the Following Is an Example of Contractionary Fiscal

question 85

Multiple Choice

Which of the following is an example of contractionary fiscal policy?

• A) increasing federal spending to renovate college campuses
• B) reducing military spending
• C) building a new interstate highway
• D) sending taxpayers a $600 rebate

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Definitions:

Average Variable Cost

The per unit variable cost of production, calculated by dividing total variable costs by the quantity of output produced.

Simulation Analysis

A process of modeling a real-world situation to study the effects of different parameters and anticipate possible outcomes.

Net Present Value

A financial metric that calculates the value of a series of cash flows by discounting them back to the present using a specific discount rate.

Variable Cost

Expenses that vary depending on the amount of products or services a company generates.