A Fiscal Policy Action to Close an Expansionary Gap Is

question 122

Multiple Choice

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

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

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Definitions:

Reinforcement

In behavioral psychology, it refers to a process that increases the likelihood of a behavior by adding or removing a stimulus following the behavior.

Randomly Varying

Characterized by changes or differences that occur in a random manner, not following any specific pattern or prediction.

Shaping

A training technique that involves gradually reinforcing behaviors that come closer and closer to a targeted action.

Partial Responses

In medical and psychological treatments, reactions that show some improvement due to therapy but do not fulfill all criteria for complete remission.