In Terms of Fiscal Policy, Which of the Following Is

question 97

Multiple Choice

In terms of fiscal policy, which of the following is an example of a fiscal automatic stabilizer?

• A)The reduction in the money supply that occurs as banks become less willing to make loans during a recession
• B)The reduction in wages that occurs as the economy goes into a recession
• C)The increase in government spending that occurs as the result of new spending bills passed by Congress
• D)The rise in tax revenue that occurs as a result of growth in real GDP

Communicate empathetically and effectively with patients during interviews and assessments.

Understand how to develop accurate nursing diagnoses based on assessment data and critical thinking.

Recognize the importance of incorporating patient preferences and cultural considerations into nursing care plans.

Distinguish between different types of nursing diagnoses and their appropriate applications.

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Definitions:

Long Run

The long run is a period in economics in which all factors of production and costs are variable, allowing full industry adjustment to changes.

Federal Funds Rate

The interest rate at which banks make overnight loans to one another

Money Demand

The desire to hold cash rather than other forms of assets due to its liquidity, determining how much money is needed for transactions, precautionary, and speculative motives.

Money Supply

The whole amount of cash, coins, and the funds in checking and savings accounts that make up the monetary resources within an economy at a specific period.