A Fiscal Policy Action to Close an Expansionary Gap Is

question 27

Multiple Choice

A fiscal policy action to close an expansionary gap is to:

• A)increase taxes.
• B)increase transfer payments.
• C)increase government purchases.
• D)increase the marginal propensity to consume.

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Definitions:

Dehydration

A condition resulting from excessive loss of body water, impairing normal bodily functions.

MDMA

3,4-Methylenedioxymethamphetamine, a synthetic drug that alters mood and perception, commonly associated with nightclub scenes and known as ecstasy.

Physiological Measures

Quantitative assessments of bodily functions used in psychological and medical research, such as heart rate or blood pressure.

Conscious Awareness

The state of being mentally alert and consciously aware of one's thoughts, feelings, and surroundings.