One Potential Problem with Using Fiscal Policy to Close Recessionary

question 72

Multiple Choice

One potential problem with using fiscal policy to close recessionary output gaps is that:

• A)sustained government deficits can be harmful to long-run economic growth.
• B)decreased government spending can cause inflationary pressure to build.
• C)reductions in interest rates can reduce savings and, therefore, investment.
• D)it may be offset by automatic stabilizers.

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Definitions:

Dominant Trait

A genetic trait expressed in an individual's phenotype, even when only one copy of the gene responsible for the trait is present.

Vestigial Wings

Remnant wings in some organisms that have lost their primary function through evolution.

Dihybrid Cross

A breeding experiment between P generation (parental generation) organisms differing in two traits, used to determine the inheritance patterns of genes.

Mendel's Model

The set of foundational principles for genetics derived from the work of Gregor Mendel, describing how traits are inherited through dominant and recessive genes.