Expansionary Fiscal Policy Actions Include __________ Government Spending And/or __________

question 54

Multiple Choice

Expansionary fiscal policy actions include __________ government spending and/or __________ taxes,while contractionary fiscal policy actions include __________ government spending and/or __________ taxes.

• A) increasing; increasing; decreasing; decreasing
• B) decreasing; decreasing; increasing; increasing
• C) increasing; decreasing; increasing; decreasing
• D) decreasing; increasing; increasing; decreasing
• E) increasing; decreasing; decreasing; increasing

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Definitions:

Dependent Demand

Refers to the demand for components or raw materials that is driven by, and directly related to, the demand for the finished goods they contribute to.

Independent Demand

The need for a product or service that is not influenced by the demand for other products, often applied in inventory management and forecasting.

Inventory

The raw materials, work-in-process products, and finished goods considered to be part of a business's assets that are ready or will be ready for sale.

Inventory Carrying Cost

The total expenses associated with holding inventory, including storage, insurance, taxes, opportunity costs, and potential obsolescence.