Which One of the Following Is True About the Effects

question 188

Multiple Choice

Which one of the following is true about the effects of fiscal policy?

• A) A decrease government spending will increase aggregate supply.
• B) A tax change does not have any direct or indirect effects on aggregate demand.
• C) A decrease in government spending will decrease aggregate demand.
• D) An increase in government spending will reduce aggregate demand.

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Definitions:

Pay-for-success Contracts

Agreements where governments or other commissioners agree to pay for social services only if measurable outcomes are achieved, shifting financial risk to investors.

Nonprofit Organization

A nonprofit organization is a type of entity that operates for charitable, educational, cultural, religious, or public service purposes, rather than for profit, and reinvests surplus revenues into the organization's mission.

Government Funding Programs

Financial programs sponsored by governmental bodies that provide grants, loans, or other forms of financial assistance to individuals, businesses, or organizations.

Grant Writing

The process of completing applications and submitting proposals to receive funding from government departments, corporations, foundations, or trusts.