Suppose Fiscal Policy Makers Implement a Policy to Reduce the Size

question 8

Multiple Choice

Suppose fiscal policy makers implement a policy to reduce the size of a budget deficit.Based on the IS-LM model,we know with certainty that the following will occur as a result of this fiscal policy action.

• A)Investment spending will decrease.
• B)Investment spending will increase.
• C)There will be no change in investment spending.
• D)Investment spending may increase, decrease, or not change.
• E) none of the above

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Definitions:

CEOs

Chief Executive Officers (CEOs) are the highest-ranking executives in a company or organization, responsible for making major corporate decisions, managing the overall operations and resources, and acting as the main point of communication between the board of directors and corporate operations.

Alienation

Marxist concept to describe the process by which workers lack connection to what they produce and become separated from themselves and other workers.

Exploitation

The act of using someone or something unfairly for one's own advantage, often in a context of power imbalance and to the detriment of the exploited party.

Class Conflict

The conflict and opposition present in society resulting from the differing economic interests and aspirations of people from various social classes.