Which of the Following fiScal Policy Changes Would Be the Most

question 176

Multiple Choice

Which of the following fiscal policy changes would be the most contractionary?

• A) a $40 billion increase in taxes
• B) a $10 billion increase in taxes and a $30 billion cut in government spending
• C) a $20 billion increase in taxes and a $20 billion cut in government spending
• D) a $30 billion increase in taxes and a $10 billion cut in government spending

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Definitions:

Physical Traits

Observable characteristics determined by genetics, such as height, eye color, and hair color.

Behavioral Traits

Characteristics or behaviors that individuals display, which can be influenced by genetics, environment, or a combination of both.

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The dynamic ongoing process of cultural change that is a consequence of variation that individuals have produced in the cultural tools they use.

Genetic Inheritance

The process by which genetic information is passed on from parents to their offspring, determining traits and predispositions.