Which of the Following Might Be Considered the Most Expansionary

question 68

Multiple Choice

Which of the following might be considered the most expansionary set of fiscal policies?  

• A) increase government purchases, increase taxes, and decrease transfer payments 
• B) decrease government purchases, increase taxes, and decrease transfer payments 
• C) increase government purchases, decrease taxes, and increase transfer payments 
• D) increase government purchases, increase taxes, and increase transfer payments

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Definitions:

Affiliation

The connection or association with a group, organization, or cause, often determined by shared interests, goals, or identities.

Complementarity Hypothesis

A theory suggesting that positive responses elicit positive reactions and negative responses elicit negative reactions during interpersonal interactions.

Balance

A state of equilibrium where different elements are in the correct proportions or positions, often used in physical, psychological, and socio-economic contexts.

Reward

Something given in recognition of service, effort, or achievement.