An Example of Contractionary Fiscal Policy Is

question 37

Multiple Choice

An example of contractionary fiscal policy is

• A) an increase in government expenditures,or an increase in taxes,or both.
• B) a decrease in government expenditures,or a decrease in taxes,or both.
• C) an increase in government expenditures,or a decrease in taxes,or both.
• D) a decrease in government expenditures,or an increase in taxes,or both.
• E) increasing government expenditures while holding taxes constant.

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Definitions:

Employer's Organization

A group that represents the interests of employers in various industries.

Ratify

To officially approve or confirm, often used in the context of validating agreements or contracts.

Actual Authority

The power that an agent or representative has been formally given by a principal to conduct specific acts.

Apparent Authority

Apparent Authority deals with the perception by a third party that an agent has the power and authority to act on behalf of the principal, even if such authority hasn't been explicitly granted.