If Output Is Falling, a Procyclical Fiscal Policy Will Result

question 116

Multiple Choice

If output is falling, a procyclical fiscal policy will result in:

• A)higher taxes and/or increased government spending.
• B)higher taxes and/or decreased government spending.
• C)lower taxes and/or increased government spending.
• D)lower taxes and/or decreased government spending.

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Definitions:

Deception

The act of misleading or misguiding someone by concealing or distorting the truth.

Peripheral-Route Processing

Type of information processing that involves attending to factors not involved in the message, such as the appearance of the source of the message, the length of the message, and other noncontent factors.

Central-Route Processing

Type of information processing that involves attending to the content of the message itself.

Cognitive Component

An aspect of our mental processes and attitudes, involving beliefs, thoughts, and awareness that contribute to our perceptions and reactions.