Which of the Following Most Clearly Indicates That Fiscal Policy

question 45

Multiple Choice

Which of the following most clearly indicates that fiscal policy is becoming more expansionary?

• A) An increase in the budget deficit relative to GDP
• B) A reduction in the budget deficit relative to GDP
• C) An increase in the budget surplus relative to GDP
• D) An increase in the nominal (dollar) size of the budget deficit

---

Definitions:

Zygomatic

Pertaining to the cheekbone or zygoma, a prominent bone in the face that contributes to the facial structure and forms the prominence of the cheek.

Articulation

The connection and movement between bones, or the articulation of sounds and words in speech.

Maxilla

The upper jawbone in vertebrates, which forms part of the skull and houses the upper teeth.

Temporal Bone

A pair of bones that form parts of the side of the skull and house the structures of the ears.