Which of the Following Terms Is Used to Describe an Expansionary

question 93

Multiple Choice

Which of the following terms is used to describe an expansionary fiscal policy that has little impact on an economy because the necessary increase in government borrowing leads to a decrease in investment spending?

• A) backlash offset
• B) fiscal reversion
• C) crowding out
• D) multiplier effect

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Definitions:

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs.

Regulation

Rules or directives made and maintained by an authority to regulate behavior or achieve an outcome.

Marginal Cost Price

The cost incurred by producing one additional unit of a product, critical for decision-making in pricing and production levels.

Monopolist

A single seller in a market who has significant control over the supply of a particular product or service and can exert considerable influence over the market price.