Which of the Following Represents the Most Contractionary fiScal Policy

question 141

Multiple Choice

Which of the following represents the most contractionary fiscal policy?

• A) a $30 billion tax cut
• B) a $30 billion increase in government spending
• C) a $30 billion tax increase
• D) a $30 billion decrease in government spending

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Definitions:

ANS

Autonomic Nervous System, a part of the nervous system that controls involuntary bodily functions, such as heart rate, digestion, and respiratory rate.

Sympathetic Division

Part of the autonomic nervous system that prepares the body for 'fight or flight' responses, increasing heart rate and blood pressure among other effects.

Energy-Expending Situations

describe scenarios that require the body to use stored energy to maintain homeostasis, such as exercise or stress responses.

Beta Adrenergic Receptors

Cell surface receptors that are sensitive to epinephrine and norepinephrine and are involved in the fight-or-flight response, affecting heart rate, muscle strength, blood pressure, and metabolism.