Which of the Following Might Be Considered the Most Contractionary

question 66

Multiple Choice

Which of the following might be considered the most contractionary 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) decrease government purchases, decrease taxes, and decrease transfer payments

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Definitions:

Partner Admission

The process by which a new partner is accepted into a partnership, often involving the purchase or contribution of capital into the partnership.

Ownership Interest

The legal rights and claims a person has in a company or property, often expressed as a percentage of ownership.

Capital Account Balances

The amount in the capital accounts of a business or an individual, representing ownership interest or invested capital.

Income Sharing

An arrangement where profits or losses are distributed among stakeholders or partners according to a predetermined formula or agreement.