Considering Only Its Direct Effect on Income, Contractionary Fiscal Policy

question 41

Multiple Choice

Considering only its direct effect on income, contractionary fiscal policy tends to:

• A)increase income and imports and lower the trade deficit.
• B)increase income and imports and raise the trade deficit.
• C)decrease income and imports and lower the trade deficit.
• D)decrease income and imports and raise the trade deficit.

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Definitions:

Coverage

The extent to which insurance policies or financial protection plans will compensate for losses or damages incurred.

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A professional who advises clients on managing their finances and achieving financial goals.

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A legal principle where one party is held liable for the actions or omissions of another, typically in an employer-employee relationship.

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