Use the Following to Answer Questions

question 79

Multiple Choice

Use the following to answer questions .
Exhibit: Fiscal Policy 1
-(Exhibit: Fiscal Policy 1) In this situation, if policymakers want to close the output gap with fiscal policies that will stimulate aggregate demand, what should they do?

• A) establish a consumption tax to encourage savings
• B) increase government spending
• C) loosen environmental regulations to lower businesses cost of production
• D) raise interest rates

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Definitions:

Avoidance

Attachment dimension suggesting a negative view of others.

Dismissing Attachment

Attachment style with low anxiety but high avoidance.

Low Anxiety

A state of being characterized by minimal stress, worry, or nervousness.

Dismissing Attachment

An attachment style characterized by a high value on self-reliance and independence, often dismissing the importance of relationships.