Fiscal Policy Refers to

question 330

Multiple Choice

Fiscal policy refers to

• A) deliberate changes in government spending and taxes to promote economic growth, full employment, and price level stability.
• B) deliberate changes in government spending and taxes to achieve greater equality in the distribution of income.
• C) altering of the interest rate to change aggregate demand.
• D) fact that equal increases in government spending and taxation will be contractionary.

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Definitions:

Rooting Reflex

Turning the mouth and head toward stroking of the cheek or the corner of the mouth.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.

Involuntary Responses

Reflex actions or responses that occur automatically without conscious decision, such as blinking or sneezing.

Rooting Reflex

An automatic response seen in newborn babies, who turn their face toward a touch on their cheek and open their mouth to "root" for a nipple.