When Expansionary Fiscal Policy Increases Income and Consumer Spending, the Subsequent

question 37

Multiple Choice

When expansionary fiscal policy increases income and consumer spending, the subsequent increase in AD is called the ________ effect.

• A) expansionary
• B) secondary
• C) multiplier
• D) None of these answers is correct.

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Definitions:

Unconscionability

A situation where a contract or transaction is so unfair or one-sided that it is deemed oppressive and unenforceable under the law.

Undue Influence

Improper or unfair persuasion that leads an individual to act against their free will or to make decisions that benefit another, particularly in contracts or wills.

Voidable

A legal term describing a contract or transaction that may appear valid but can be annulled by one of the parties due to certain defects or circumstances.

Void

Refers to a legal declaration that a contract or transaction is invalid and without legal effect from its inception.