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:

Multiple Causes

A principle acknowledging that outcomes often have more than one cause, highlighting the complexity of determining singular explanations for events or phenomena.

Level of Processing

A theory suggesting that the depth (shallow to deep) of mental processing affects memory recall, with deeper processing leading to better recall.

Unifying Themes

Broad ideas or concepts that serve to tie together or integrate various elements into a coherent whole.

Semantic Memory

A type of long-term memory involving the storage of general knowledge and facts about the world, separate from personal experiences.