Which of the Following Most Clearly Indicates That Fiscal Policy

question 145

Multiple Choice

Which of the following most clearly indicates that fiscal policy is becoming more restrictive?

• A) An increase in the budget deficit relative to GDP
• B) A reduction in the budget deficit relative to GDP
• C) An increase in government expenditures as a share of GDP
• D) A reduction in tax revenues as a share of GDP

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Definitions:

Prefrontal Cortex

The region of the brain located at the front of the frontal lobes, instrumental in decision-making, planning, and moderating social behavior.

Organizing Movements

The process of coordinating and directing actions or efforts towards achieving a specific goal or social change.

Cerebellum

A region of the brain that plays a vital role in motor control, balance, and coordination.

Motor Skills

The abilities required to control the precise movements of muscles, categorized into fine and gross motor skills.