The Set of Fiscal Policies That Would Be Most Contractionary

question 76

Multiple Choice

The set of fiscal policies that would be most contractionary would be a(n)

• A)increase in government spending and taxes.
• B)decrease in government spending and taxes.
• C)increase in government spending and a decrease in taxes.
• D)decrease in government spending and an increase in taxes.

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Definitions:

Beta Cells

Cells located in the pancreas that produce and release insulin, a hormone crucial for regulating blood sugar levels.

Mineralocorticoids

A class of steroid hormones that regulate electrolyte and water balance by acting on the kidneys, primarily aldosterone.

PTH

Parathyroid hormone, a regulator of calcium levels in the blood.

Insulin

A substance secreted by the pancreas that controls blood sugar levels by assisting the absorption of glucose by cells.