Which of the Following Is an Example of a Fiscal

question 78

Multiple Choice

Which of the following is an example of a fiscal restraint policy?

• A)increasing government expenditure
• B)increasing taxes
• C)cutting transfer payments
• D)A and B
• E)B and C

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Definitions:

Scientific Method

A systematic process for conducting research and experimentation, involving the observation, hypothesis formation, experimentation, and the analysis of data to draw conclusions.

Economics

Economics is the social science that studies how individuals, governments, firms, and nations make choices on allocating scarce resources to satisfy their unlimited wants.

Experiments

Scientific procedures undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.

Natural Experiments

Observational study setups where the variables of interest change naturally, allowing researchers to study outcomes without direct manipulation.