Expansionary Fiscal Policy Can Mitigate Recessions, but It Also

question 28

Multiple Choice

Expansionary fiscal policy can mitigate recessions, but it also

• A)raises the budget deficit.
• B)reduces the budget deficit.
• C)has no impact on the budget deficit.
• D)none of these.

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Definitions:

Distress

A state of emotional strain or pain, often caused by excessive stress or anxiety.

Theft

The act of stealing; the unlawful taking of someone else’s property without their consent.

Cognitive Dissonance

A psychological discomfort experienced by an individual who holds contradictory beliefs, values, or attitudes, especially regarding personal decisions and behavior.

Psychological Discomfort

A state of emotional or mental unease, often the result of cognitive dissonance, anxiety, or other psychological factors.