Non-Discretionary Fiscal Policy Designed to Counteract a Reduction in Aggregate

question 9

Multiple Choice

Non-discretionary fiscal policy designed to counteract a reduction in aggregate demand might include

• A)an increase in the money stock.
• B)a return to the gold standard.
• C)increased government spending on unemployment benefits.
• D)all of the options are correct.

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Definitions:

Remittances

amounts of money sent by migrants to their home country, often serving as a significant source of family and national income in many countries.

Investment Capital

Funds invested in a project, company, or any asset with the expectation of generating a future return.

Export Promotion Policies

Government initiatives aimed at encouraging firms to export more of their goods and services, enhancing a country's trade balance.

Comparative Advantage

The ability of an entity to produce a good at a lower opportunity cost than another entity, promoting trade benefits.