In Order for Fiscal Policy to Effectively Offset a $1

question 128

Multiple Choice

In order for fiscal policy to effectively offset a $1 million decrease in consumer spending,the government would MOST likely have to:

• A) keep a balanced budget.
• B) increase spending by $1 million.
• C) increase spending by more than $1 million.
• D) increase spending by less than $1 million.

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Definitions:

Warranties

Legally binding promises or guarantees about the state or quality of a product or service, provided by the seller.

Presentment

The act of formally presenting a document, such as a check or bill of exchange, for acceptance or payment.

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Fraud in the Inducement

A deceptive practice intended to mislead someone into entering a contract or agreement by providing false statements or misleading information.