Restrictive Fiscal Policy Is Used To

question 7

Multiple Choice

Restrictive fiscal policy is used to:

• A) Reduce economic activity
• B) Increase economic activity
• C) Increase inflation
• D) Increase deficit spending

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Definitions:

President

The head of state and head of government in a republic, typically elected to lead the country's executive branch and implement national laws and policies.

Board of Governors

The leading body of a central bank in many countries, responsible for overseeing the management and operations of the bank.

Federal Reserve

The central banking system of the United States, responsible for managing the nation's monetary policy and regulating its financial institutions.

Open Market Operations

Activities undertaken by a central bank, such as the buying or selling of government securities, to control the money supply and interest rates.