An Example of Contractionary Fiscal Policy Is

question 37

Multiple Choice

An example of contractionary fiscal policy is

• A) an increase in government expenditures,or an increase in taxes,or both.
• B) a decrease in government expenditures,or a decrease in taxes,or both.
• C) an increase in government expenditures,or a decrease in taxes,or both.
• D) a decrease in government expenditures,or an increase in taxes,or both.
• E) increasing government expenditures while holding taxes constant.

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Definitions:

Collectivity

A term describing a group of individuals who share or are motivated by at least one common issue or interest, or work together to achieve a common objective.

Experimental Group

The group in an experiment that receives the treatment or the variable being tested.

Control Group

In experimental research, a group of subjects that does not receive the experimental treatment or intervention being tested, used as a benchmark to measure the effect of the treatment.

Controlled Experiment

A scientific test that is directly manipulated by a researcher, to determine the effect of a variable on a particular system.