To Combat a Recession with Discretionary Fiscal Policy, the Federal

question 167

Multiple Choice

To combat a recession with discretionary fiscal policy, the federal government should

• A)decrease government spending to balance the budget.
• B)decrease taxes to increase consumer disposable income.
• C)lower interest rates and increase investment by increasing the money supply.
• D)raise taxes on interest and dividends, but not on personal income.
• E)sell government assets to reduce the budget deficit.

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Definitions:

Single-Factor Research

A study design where the effects of one independent variable on a dependent variable are examined.

Independent Variables

Variables in an experiment or model that are manipulated or categorized to determine their effect on dependent variables.

Main Effects

The direct impact of independent variables on dependent variables in factorial research, not accounting for interactions between variables.