The Federal Budget Acts as a Component of Fiscal Policy

question 5

Multiple Choice

The federal budget acts as a component of fiscal policy by

• A)stimulating the economy as deficits are reduced
• B)stimulating the economy as deficits are increased
• C)controlling the growth of the money supply
• D)changing the discount rate

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Definitions:

Amygdala

A part of the brain that plays a crucial role in feeling emotions, specifically fear and pleasure.

Flashbulb Memories

Vivid, detailed memories of significant or emotional events, which feel as though they have been captured in a snapshot.

Emotionally Significant

Pertaining to events or experiences that have a strong affective impact on an individual, often shaping behavior and memory.

Limbic System

A complex system of nerves and networks in the brain, involved in emotions and drives such as fear, pleasure, and anger.