Simone Must Make a Decision Whether to Take Out a Loan

question 75

Multiple Choice

Simone must make a decision whether to take out a loan and buy a new car or keep her old car and just keep having it repaired. Simone's dilemma illustrates the concept of

• A)frustration.
• B)conflict.
• C)pressure.
• D)burnout.

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Definitions:

Discretionary Fiscal Policy

Government policy involving deliberate manipulation of government spending and taxes to influence the economy based on current economic conditions.

Aggregate Demand

Aggregate demand is the total demand for all goods and services within an economy at a given overall price level and in a given time period.

Multiplier Effect

The phenomenon where an initial change in spending leads to a greater overall change in income and output in the economy.

Business Activity

Collective commercial, industrial, or professional operations within an economy, indicative of its overall economic health.