Contractionary Fiscal Policy May Have Some Undesirable Consequences

question 109

Multiple Choice

Contractionary fiscal policy may have some undesirable consequences.Among these is

• A)higher unemployment.
• B)higher inflation.
• C)higher net exports.
• D)larger federal deficits.

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Definitions:

Fund Financial Statements

Financial reports that detail the income, expenditures, and other financial activities of a specific fund within an organization.

Facility Closure

The process of permanently shutting down operations at a business location, often involving asset disposal and employee layoffs.

Proprietary Funds

Funds typically used in governmental accounting to account for business-like activities, where the government intends to recover costs through user charges.