A Deficit Resulting from the Use of Discretionary Fiscal Policy

question 101

Multiple Choice

A deficit resulting from the use of discretionary fiscal policy

• A)increases interest rates
• B)decreases interest rates
• C)increases interest rates if the effect of the decrease in the demand for money is greater than the effect of the increase in the supply of government securities
• D)increases interest rates if the effect of the decrease in the demand for money is less than the effect of the increase in the supply of government securities
• E)increases interest rates if the effect of the increase in the demand for money is greater than the effect of the decrease in the supply of government securities

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Definitions:

Inner Conflict

A psychological struggle within the self, arising from opposing demands or impulses.

General Adaptation Syndrome

General Adaptation Syndrome is a three-phase response to stress identified by Hans Selye, including alarm, resistance, and exhaustion stages.

Stage of Exhaustion

Refers to the final phase of the General Adaptation Syndrome where the body is no longer able to resist stressors effectively, leading to depletion of energy and possible health issues.

Alarm Stage

The initial reaction of the body's stress response, marked by heightened awareness and mobilization of resources to confront a perceived threat.