In a Booming Economy, Fiscal Policy Automatically Becomes

question 56

Multiple Choice

In a booming economy, fiscal policy automatically becomes:

• A) contractionary as tax rates rise and welfare payments fall.
• B) expansionary as tax rates rise and welfare payments fall.
• C) contractionary as tax rates fall and welfare payments rise.
• D) expansionary as tax rates fall and welfare payments rise.

---

Definitions:

Terrestrial Biomes

are large community units, distinguished by their predominant vegetation and are adapted to specific climate conditions on Earth, such as forests, deserts, and grasslands.

Alpine Tundra

A biome found in the high mountain regions of the world, above the tree line, characterized by windswept landscapes, low temperatures, and minimal vegetation.

Tree Line

The highest elevation or latitude line beyond which trees are unable to grow due to unsuitable environmental conditions, such as cold temperatures or lack of moisture.

Snow Line

The lowest altitude area on a mountain where snow remains throughout the year.