Which of the Following Fiscal Policy Actions Would Be Appropriate

question 142

Multiple Choice

Which of the following fiscal policy actions would be appropriate if the economy is experiencing an inflationary gap?

• A)an increase in government spending
• B)an increase in taxes
• C)a decrease in interest rates
• D)an increase in the money supply

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Definitions:

Corpus Callosum

A broad band of nerve fibers joining the two hemispheres of the brain, facilitating communication between them.

Hippocampus

A region of the brain associated with memory formation and spatial navigation.

Amygdala

A section of the brain that is crucial for emotion regulation, emotional learning, and forming memories associated with emotional events.

Cerebral Cortex

The outer layer of the brain's cerebrum, involved in high-level brain functions such as thought, action, and perception.